30 Aug 2007

GBPUSD - UP

I was wrong yesterday, profits taking take place in the midst of Tuesday freefall and despite the concerns of the spread of sub-prime woes.

Leading toward Feb interest rate announcement, I will expect the market to head north with an assurance that the rate is going to be cut.

Looking at the technicals, on a daily chart, WMA5 nows hover between EMA55 and EMA100. Both direction can go. If the last 2 days is the formation of the B-wave, I will expect a big breakout north today.

I will set the breakout for today at 2.0190 and 2.0010. The resistance is at 2.0330 and the support is at 1.9935.