Sterling reacts to obama pessimism about recession

President-elect Barack Obama said the U.S. recession will worsen before a recovery takes hold and that he will offer a plan to boost the economy “equal to the task” without worrying about a short-term widening of the budget deficit.

Fundamental
President-elect Barack Obama said the U.S. recession will worsen before a recovery takes hold and that he will offer a plan to boost the economy “equal to the task” without worrying about a short-term widening of the budget deficit. Dealing with the loss of jobs, frozen credit markets, falling home prices and other signs of economic turmoil is “my number one priority,” Obama said on NBC’s “Meet the Press” program, which aired yesterday. Later at a Chicago news conference he said “more aggressive steps” are needed to cope with the housing crisis.

Technical
The U.K. currency start to bounce after President-elect Barack Obama said the U.S. recession will worsen and technically the market breaks standard error channel upper line and we can see strong demand in the market, based on technical indicators like RSI, which is in a bullish direction, MACD crosses the signal line and is pointing upwards, and Bollinger gives us a buying signal by closing the candle above the lower band.

GBP/USD (Daily Chart)
The primary tendency is in a clear downtrend.

 

 

 

Resistance
1.5070
1.5180

Support
1.4945
1.4900