GBP/USD: Sequence of false breaks adds to uncertainty.
GBP/USD has witnessed two failed breaks over recent sessions, which are best
viewed in the hourly time frame. The initial fall under 1.5577 was quickly
reversed which led to a push over 1.5726. This failed to gain momentum, seeing
a return to the hourly range for the week.
As expected, 10 year Italian sovereign yields have found interim support close
to 5.750% and are now trading back above 6.000%. If this deterioration continues
then we can expect to see Sterling being adopted as a safe haven again. This
may help to explain why we have not broken out of the week's range yet, whereas,
at the time of writing, most other currencies are lower versus the USD from
a weekly perspective.
We remain alert to the fact that we are nearing the base of the year long
range which, given the short-term relief seen in the Euro-Zone, may offer
opportunities to enter long positions.
Taking this approach will need to see levels closer to 1.5400 for a well placed
stop. The range bound trade of the last few days is best avoided.
MIG BANK, formerly known as MIG INVESTMENTS, was established in Neuchatel,
Switzerland as an online Forex broker and
in 2009 became the world's 1st Forex broker to obtain a Swiss banking license.
Since its foundation in 2003, MIG BANK specializes in online Forex
trading and remains a leading Forex broker for clients in more than 120
countries.
No information published constitutes an offer or recommendation, to buy or
sell any investment instrument, to any transactions, or to conclude any legal
act of any kind whatsoever.
The information published and is provided by MIG BANK for personal use and
for purposes only and are to change without notice. MIG BANK makes no representations
(either expressed or implied) that the information and opinions expressed are
accurate, complete or up to date. In particular, nothing contained constitutes
financial, legal, tax or other advice, nor should any investment or any other
decisions be made solely based on the content. You should obtain advice from
a qualified expert before making any investment decision.
All opinion is based upon sources that MIG BANK believes to be reliable but
they have no guarantees that this is the case. Therefore, whilst every effort
is made to ensure that the content is accurate and complete, MIG BANK makes
no such claim.
Limitation of liability
MIG BANK disclaims, without limitation, all liability for any loss or damage
of any kind, including any direct, indirect or consequential damages.
Material Interests
MIG BANK and/or its board of directors, executive management and employees
may have or have had interests or positions on, relevant securities.
Copyright
All material produced is copyright to MIG BANK and may not be copied, e-mailed,
faxed or distributed without the express permission of MIG BANK
Daily
Technical Report
Circle Us