GBP

what a day! both cat and dave showed up.

Cancellation of the construction of "The Pinnacle" high rise office block in london because of failure to secure clientele,the closure of the comet stores,several thousand laid off at UBS London office,salary cuts across the city,lay-offs at GM plants,the fundamentals of UK ecconomy looking very weak to me and only buoyed up by sky high real estate market being put beyond most peoples reach by foreign buyers who will run at the scent of a possible labour victory as election year gets closer. Think the pound got some legs on the back of weak yen and US fiscal cliff anxiety but am looking for it to show signs of overextension soon and start going short for long term play.GB"old grey" your right GBP/CHF is a very good indicator of real sterling strength and look where that is going ??

A Brief Look At Binary GBP/USD

Last week the British pound posted very decent gains against its U.S. counterpart, as market participants were expecting a new wave of quantitative easing to be announced by the Federal Reserve in its meeting, scheduled for Thursday. After struggling with the key 1.60 level for a while, the sterling finally broke the resistance and moved higher for the rest of the week. The currency was also helped by the positive economic data, which were released in the course of the week. First, the trade balance figures came in better than expected. Analysts were projecting the deficit on the current account to have contracted to 8.9B for the month of July from a reading of 10.1B for the previous relevant period. Instead, the trade deficit declined to 7.1B, scattering the bears in the pound and fueling another wave of buying. On Wednesday, we had the closely monitored claimant count change figures being announced. They also surprised on the upside. Economists were projecting the people claiming unemployment-related benefits to have risen by 100, but the Office for National Statistics report indicated that actually 15,000 people fewer filed for government benefits. The response to this positive development was so strong that it overshadowed the news that the U.K.s unemployment rate rose to 8.1% in July. On Thursday, the auction of 10-year gilts showed that the yields have risen on a month over month basis as investors preferred to put their money in higher-grossing assets such as stocks. The bid-to-cover ratio was also relatively low. These news, however, remained in the background as the spotlight was on the Federal Reserve statement, which was scheduled for later in the day. The U.S. central bank announced a new bond-buying program that surprised market participants with its aggressiveness. According to the new plan the Fed would have to buy $40 billion worth of mortgage backed securities and government bonds with longer maturities for as long as necessary for the employment in the worlds largest economy to start picking up again. After the news hit the wires traders sold the dollar and bought its major counterparts as they were expecting the new measures to have a dilutive effect on the U.S.

currency. The sterling finished the session around the highs and continued rising in the last day of the week. The GBP/USD closed at 1.6211 of Friday on a weaker note as it retracted from highs of 1.6257, which it touched earlier in the day. This week the pound is moving sideways, posting modest gains against the greenback. Yesterday we touched fresh new highs of 1.6274 for the month and we are now very close to the crucial 1.63 level, where the April rally ran out of steam. If we manage to break above the aforementioned level, we will move to the GBP/USDs highest rates since late August of 2011. For today, however, the pound will probably remain below its Monday highs as the inflation figures for the U.K. economy disappointed. Although the CPI on year over year basis came in line with expectations, the RPI dropped to 2.9% from a reading of 3.2% for the month of July. The core CPI and the HPI also slipped to 2.1% and 2.0%, respectively, from a reading of 2.3% for the previous relevant period.

Technically speaking, the resistance in the currency pair is provided by the 1.63 level, while support is provided by the 25-period moving average around 1.6192. Oscillators are moving around the upper bands of their respective ranges with the relative strength index at 65 and the stochastic at 61. The MACD has reached the highs of late August and is issuing sell signals, which might indicate that we will see a correction of some sort before we move to higher grounds.
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Watching GBP/JPY long as noises come out of Tokyo of an intervention in response to Bernanke and Draghi,its got to come sometime soon !