Samstag, 25. Juli 2009

Dollar Bottom at least in GBP/USD?


There are some hints that the recent rally in equities, based mainly on better than expected stocks earning data (which were caused by cutting employment and not increasing sales! 9.5 % unemployment rate in the US is not by accident!!)) and not confirmed in the forex market (as the EUR/USD , Yen-crosses and commodity currencies are still below their june highs) as well as gold and silver, is not sustainable and due to a correction. In a weekly chart of GBP/USD we see a bearish crab pattern and the first profit target would be around 1.57-1.58

This level could easily be reached, especially if the BoE decides not to pause their Quantitative Easing program, something not totally unlikely regarding the terrible UK GDP data this friday.

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