GBPUSD violate supports in this morning trades. Cable, GBPUSD rose mildly to 1.6326 having traded lower on Asian session. The ground caved in on cable, GBPUSD as market made u-turn as day unfolds. Is this a sign of what lies ahead?
On Frankfurt open at 0600, the cable, GBPUSD rose mildly to 1.6326 from 1.6290 having traded lower from Friday’s sessions and Asian overnight trades. The sell-off began just as London was opening raising further doubts on pound sterling strengths. The selling blitz went down to new low of 1.6094 from it’s daily high of 1.6326. All these in just a little over two hours.
In fact, the pair broke through three support levels on its way down. This triggered a new GBPUSD low as broke three support levels to a low of 1.6099. Is this an end to the rise we have seen since the first week of May 2009? Could there be some more action play on the pound sterling than what we have seen thus far?
Effects of Weakened GBPUSD as it violate support
The effect of the UK economic weakness is starting to hit home one families as the value of sterling erodes through inflation. What this means is that instead of London and GBPUSD becoming a safe investors haven, people moves their money elsewhere.
With time unemployment would begin to kick in which would make matter worse as family household income falls. If there are senses in the minds of our policy makers, it is that efforts should be made in manufacturing again. Britain lost her way when she lost her manufacturing edge in the 80s.
Finally, building the strength of cable, GBPUSD again requires collective efforts. Until the politicians understand this the whole recovery talk is nothing but a white-wash and self-serving ideological views. Are you a trader trader? What was your position today? We want to hear from you. Send us your comments below.
