GBPUSD UPDATE: GBPUSD pair blows past 200 day SMA.

[RTFX-Trading]

GBPUSD UPDATE: GBPUSD pair blows past 200 day SMA.

The dollar continued strengthening against its major rivals yesterday. The greenback blew the 200 day SMA support against the Sterling yesterday. The next key level to watch is now at 1.5708, which is the low reached on October 13th 2009. This is also the lowest level the major currency pair has reached since May 2009. However daily technical studies are looking oversold, therefore we recommend selling corrective rallies rather than breaks. Rallies should find resistance around 1.6200 levels before retest of October lows at 1.5700.

Look out for the release of the minutes from the Bank of England’s monetary policy meeting today at 10:30 CET. The market expects that the 2 major decisions of keeping rates at 0.50% and asset purchases program at 200B pounds were anonymous. Any surprises could result in a sharp move in Sterling crosses, including GBPUSD.



Emman Xuereb
RTFX Ltd
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