Tuesday October 5, 2010 - 01:04:51 GMT
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Forex Hound - www.forexhound.com
Technical, Fundamental Factors Hold GBP USD Rangebound
The GBP USD continued to trade inside of the September 30
outside range day at 1.5922 to 1.5668.
This pattern has temporarily frozen the trade as traders await the
latest monetary policy statement from the Bank of England on October 7. A pair
of Gann angles is also forming a triangle between 1.5895 and 1.5676. This
formation is also helping to confine trading activity.
If Monday was any clue, then traders should look for much of
the same action until the central bank meeting. In addition, the release of the
U.S. Non-Farm Payrolls Report on Friday may also keep traders on the sidelines.
British Pound speculators are focusing on the possibility
members of the BoE are leaning toward restarting the bankâ€™s quantitative-easing
The Dollar/Yen gained ground on Monday as traders speculated
the Bank of Japan would leave interest rates unchanged at 0.1% while perhaps
announcing further easing measures to combat the rise in the Yen.
Gann angle support at 83.28 has slowed down the USD JPY
decline the last few days, but the charts indicates there is room to fall to
82.88 if this angle fails.
Traders are approaching the short-side with caution because
of the possibility of another intervention. Either way one looks at it,
speculators seem to be testing the resolve of Japanese government officials
with each lower-low this market makes.
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