12 Feb 2010

GBP/USD
Euro slid as a statement issued by European leaders left open how the EU would respond to a fresh wave of speculative attacks against Greece or countries such as Spain and Portugal, which are also struggling to cut their budget deficits. - Bloomberg.

Things are not settled as there are no concrete plan to solve the problem.

Pound will continue to be bounded within 1.57 and 1.58. On the support it hinges on 1.55 and 1.56.

As such a break must occur before the pound take flight in any clear direction. Traders, however are cautious as everyone is waiting for something concrete to happen. As long as there is no concrete solution to the greece problem, it will be a wait and see situation.

UK has not lost its credit rating problem.

It will be good to trade bounce between 1.57 and 1.56 and prepare for relinguish position is a breakout happens at either 1.55 or 1.57.