GBP/USD To Consolidate With Risks Skewed Lower
Asia-Pacific exchange net America 2010-01-22 07:57:51
GBP/USD to consolidate with risks skewed lower. Pair hurt by inflamed risk aversion, lingering concerns about weak UK fiscal situation. But GBP/USD losses tempered by weaker USD sentiment, better UK December public sector finances (net borrowing was GBP15.7 billion, less than GBP18.4 billion expected), upbeat CBI industrial orders survey for January: industrial output balance rebounded to +4 in January from minus 7 in December (vs forecast for minus 6). Data focus: 0930 GMT UK December retail sales. GBP/USD daily chart mixed as MACD bullish, but stochastics in bearish mode. Support at 1.6122 (yesterday''''s low); breach would expose downside to 1.6045 (Jan. 11 low), then 1.5892 (Jan. 7 reaction low) and 1.5830 (Dec. 30 reaction low). Resistance at 1.6240 (previous base set Wednesday); breach would target 1.6311 (yesterday''''s high), then 1.6371 (Wednesday''''s high), 1.6457 (Tuesday''''s reaction high) and 1.6477