Archived IMT (2010.12.15)

STERLING SANGRIA HANGOVER; GBP worst performing currency of the day and the week; Barclays exposure to Ireland/Portugal/Spain standing at 94 bln by end of Q3, and the PIIGS banking sector under more scrutiny, GBP could well become a substitute for EUR vis--vis safer haven currencies such as USD and JPY. Todays UK jobless data showed a 1.2K decline in Nov, less than the expected 3K, while the ILO measure of unemployment rose to a 7-month high of 7.9%. Cable downtrend remains intact after failing to regain i) the Nov trendline resistance ii) 55-day MA of $1.5890s. Interim support stands at $1.5520s, a break of which to call up $1.5275. This daily bearishness is also supported by the slow stochastics. EURGBP breaks above 200-day MA of 0.8520, so thorough close above 0.85 could pave the way to 0.8570. Keeping my long term bearishness intact as seen via the Jan trendline resistance.