British Pound started going down a few hours before
very important Bank of England Stability Report was released. It stabilized
minutes before the release and now after the release all Pound pairs seem to be
consolidating. Pound is generally weak, especially against New Zealand,
Australian dollar and US dollar. The only currency that it seems to be strong
against is Swiss Franc.
I currently have longs in gbp/chf pair and planning
to keep it till 1.4800 level. I expect the area to be reached by the end of the
week. The pair seems to have formed double bottom pattern and is now trying to
break 1.4500 resistance level. If news from Germany tomorrow and Friday is more
negative than positive this resistance will not hold and the above mentioned
take profit target will be reached as I have planned.
I have no real ideas why commodity currencies are
rallying, but it could be connected with some stability coming back from China.
In my opinion, this counter trend move in Aussie and Kiwi pairs will be short
lived and we will have good opportunities to sell rallies and go in the
direction of the main downward trend.
You can see how individual currencies doing here: http://seekingalpha.com/data/currencies
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