Suppose I told you that today is the day the British pound sterling could offering you great opportunities would you have taken my word for it? Would you have contemplated taking the position at all? Did I hear you say yeah with a pinch of salt? Let’s find out why.

Well, today was one of those days where activities that could sway the pound sterling in either way existed. Last night our analyses we came up to the conclusion I share with you today working from our known information into the unknown.

Here’s why. Today there were the economic reports;

1). Unemployment monthly report will be released. The  unemployment numbers is an important indicator of the UK overall economic health because people are more likely to spend when they have jobs than when out of work. With so many queing for work this look grim for now. We anticipate volatility in the market place aplenty.

2). Bank of England (BOE), Monetary Policy Committee (MPC) minutes of the last voting will be released. The last report was concluded that interest rate remain unchanged. With the state of the UK economy we maintain a view of 0, 0, 9 votes. That is, no vote for rate hike or cut but all in favor of keeping present rate.

3). Technical indicators. The last two weeks have seen a rise and fall of a 1300 pips range. We see this being whittled even though the  Asian session traded 1.6459 on London open.

However, a retrospective look from previous weeks to date give us reasons to be suspicious of any long position today.

While we play the waiting game, we expect the pound sterling to tone-down its recent bullish mood. As you know none of these are cast on stone but, if this move breaks down as we anticipate it could be huge.

Do you have a view on this matter? I invite you to leave us your comments. It doesn’t matter if you disagree.

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