GBP/USD Analytics

28/03/2008
GBP
All attention will be focused on British economy today. Statistics on the growth rates of GDP and balance of payments for 4 quarter will show whether the American crisis had an impact on British economy or not. Like in the United States, in Britain they expect GDP growth of 4 quarter to 0.6% level.
GBP | USD is located near the intermediate level of 50% of the price drop. It is expected that against the background of the American currency weakness the price will rise to 2.04 again, followed by turnout of the trend. The area looks oversold to the British currency, so the price will not be able to remain there for a long time. It is recommended opening long positions on the pair, in the case of growth, above 2.01 to 2.04 target, and short positions from 2.04 to 1.98 intermediate target.

GBP

GBP | USD is approaching to the area of closing five-year cycle (end of 2006) located in the area of 1.9575. It is expected that there will be fixation of some positions opened for the sale of GBP and the pair will make rebound upwards.
In the case of turnout signs, it is recommended to open up long positions with intermediate target in the region of 1.9720 and make stop loss below 1.9550.
Among the news about British economy which will be published today, unemployment should be pointed out, however taking into account issue of an important bloc of statistics of the United States it is likely that it will not make any impact.
PoltekFX Analytics � Blog Archive � Review of FOREX 16.04.08


Decline should be supported around 1.9754 - 1.9707 zone for rally to above 1.9899. A clear break of 1.9707 will damage this expected rally.