Finotec News Archive - February 14 2008
Sterling hits 3 days high versus U.S. dollar!
Sterling rose to three-day highs against the U.S. dollar after the Bank of England signaled that interest rates will be eased more modestly than markets were discounting.
Anthony Boyajian 
14 February 2008
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Sterling rose to three-day highs against the U.S. dollar after the Bank of England signaled that interest rates will be eased more modestly than markets were discounting.
The pound's yield appeal was boosted after the BoE said in its quarterly inflation report that inflation will likely overshoot the central bank's 2 percent target if it cuts rates as aggressively as markets had expected.
The following technical analysis gives us a detailed lookout on what is expected to happen to GBP/USD.
The buying point is at 1.9691; based on a clear uptrend.
- Previous resistance is the take profit at 1.9783
- Fibonacci 50% is the stop loss at 1.9587
The selling point is at 1.9550; based on a break of a strong support.
- Previous support is the take profit at 1.9455
- Fibonacci 61.8% is the stop loss at 1.9634
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bullish direction.
The momentum oscillator is very important to understand the strength of the market and as we see on the graph it is in an uptrend. The Stochastic oscillator breaks 20% line and continues to go higher.
* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
By Finotec’s professional analyst,
Tony B.
dealingdesk@finotec.com
GBP/USD Hourly Chart
Finotec Analysis Team
14 February 2008
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