GBP/USD News

Coming up Today (All Times GMT) No Major Event Scheduled Today Trading activity might be subdued today, as US markets will be closed to honor Martin Luther King's day. For the week to come, investors will be monitoring year-end corporate results. US banking groups will be on the spotlight - with Citigroup, Goldman Sachs, Morgan Stanley and Bank of America updating their forecast for 2011 - accompanied by large high-tech and industrial bellwether like Apple, eBay and General Electric. On the macroeconomic front, upcoming key events will be the release Tuesday of UK inflation data and German Zew Confidence Survey. EURUSD Last week, European efforts to achieve successful bond auctions have been rewarded by a 3% rise of the euro. At the same time, the US dollar suffered from disappointed employment data and a fall in consumer confidence indicator. On both sides of the Atlantic, it seems that consumers are starting to feel the effect of rising commodities prices. This could hurt consumer spending,...

In Monday’s weekly analysis webinar, it was mentioned that the GBPUSD was trading Triangle Formation with a multi month down trend and a short term uptrend. And that this could lead to breakout move higher for the GBPUSD if it traded above its downtrend. This move occurred yesterday when the GBPUSD traded at 1.5625 and continued to rally over 100 pips to nearly 1.5800. Traders that bought the GBPUSD as the breakout was occurring were able to gain a quick profit. A client with $1000 and used 50:1 leverage to buy 50,000 GBPUSD was able to buy at 1.5625 and sell at 1.5750 for a $625 gain. That is a 62.5% gain on a 0.8% move in the GBPUSD.

Sterling erased early gains against the U.S. dollar on Monday after British mortgage lender Halifax said U.K. house prices fell at their fastest pace in more than a year in December. GBP/USD retreated from 1.557, the daily high, to hit 1.5498 during European morning trade, shedding 0.31%. Cable was likely to find support at 1.5404, last Friday’s low and resistance at 1.5578, the high of the same day. The Halifax house price index fell 1.3% in December, after a 0.2% fall in November. That took house prices in the three months to December down 1.6% compared with a year ago, the biggest fall since November 2009. Analysts had expected house prices to fall 0.3% in December. Martin Ellis, housing economist at Halifax, predicted little change in UK house prices in 2011. "Interest rates are likely to remain very low for some time. This will continue to support a favorable affordability position for those entering the market and limit financial pressure on existing homeowners to sell,"...

Two US economic releases sparked a huge rally in the Dollar yesterday. Forex traders reacted positively to record ADP Employment and ISM figures which appeared to indicate that cash heavy corporations are starting to spend. Traders were betting that this possible huge economic boost from corporations could take pressure away from the US government to continue its stimulus policies. After yesterday’s figures today’s US Initial Claims data will be in focus as it sets the stage for tomorrow’s Non Farm Payroll release. EURUSD After hitting a double top at just above 1.3400 over the past 7 trading days, the EURUSD has been in retreat. This was especially seen yesterday as the EURUSD traded to a low of 1.3125 after breaking below its 1.3250 support level. Looking ahead, with much of Europe on holiday today, volatility is expected to remain light until the beginning of the US session later in the day. However, traders should keep an eye on the 1.3100 figure as...