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Longs Give Up on GBP USD After Treasury Secretary Paulson's Comments

By:   James Hyerczyk
  • 22-07-2008
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Today's rally then sell-off in the GBP USD market looks as if this may have been the last attempt to rally this pair.

Based on the recent bearish reports in housing and inflation, it is inexplicable what was holding this market up.

Additionally, a comment from Bank of England policy maker David Blanchflower that the U.K. was entering a recession that could last for at least a year should have had this market down yesterday.

Nonetheless, it looks as if the strength in the Dollar will be enough to drive the longs out of the Pound.

Technically, this market broke a key up trending support angle.  Look for a further decline to a retracement zone at 1.9902 to 1.9842.

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Next Analysis: USD CHF Likely to Continue Rally on Strength in Stock Market
Content Provided by:
James Hyerczyk

James A. Hyerczyk is a registered Commodity Trading Advisor with the National Futures Association.

Mr. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor.


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