Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Wednesday, January 31, 2007

Sterling Outlook (31st January 2007)

A welter of US data will be released ahead of today's 19:15GMT FOMC rate verdict and statement. That welter of data includes the 13:30GMT advance estimate of Q4 GDP, and the 14:45GMT unveiling of January's Chicago PMI index. Annualized GDP forecast: 3.0%. Chicago PMI forecast: 52.0. US and European name selling of the pound was seen from the European open, with tripped stops under 1.9600 and 1.9550 helping depress GBP/USD to 19-day lows just shy of 1.9510.

The latter level is a 61.8% Fibo retracement point of the ascent from 1.9260 (Jan 8 low) to 1.9917 (last week's 15-year high). Further stops are touted sub-1.9510. Bear targets below include 1.9430 and 1.9400. 1.9650/60 is now a rebound resistance window. Upper obstacles are located at 1.9580, 1.9600, 1.9611 (today's Asian session base), 1.9637 (today's Asian session top), 1.9663 (yesterday's NY session peak), and 1.9700. January's GfK UK consumer confidence gauge unexpectedly improved to minus 7, from minus 8 in December, against a forecast drop to minus 9. January's UK manufacturing sector PMI is due tomorrow.

No comments: