Bank of England Rumor Turns GBP USD Trend Down

The GBP USD declined hard on Monday on rumors the Bank of England would increase its quantitative easing program to $40 billion. The main trend turned down on the trade through the last swing bottom at 1.6187 but could not accelerate to the down side as this pair reached a technically oversold area.

Based on the first leg down from 1.6743 to 1.6094, traders should look for a selling opportunity on a rally back to 1.6419. If resistance is found at this price then the next move down should take the GBP USD to 1.5770.

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Posted by James A. Hyerczyk at 2009-07-06T17:06:00
Categories: british pound
Tags: GBP USD
 

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