Intraday Market Thoughts

Archived IMT (2008.09.30)

by Ashraf Laidi
Sep 30, 2008 12:28

Sterling had recovered from its $1.7970 lows to as high as $1.8117 after a 4-point rebound in the GfK survey on September consumer confidence. Despite broad market losses in Asia and Europe, sterling bounced off its lows, but upside is seen limited at $1.8130s, which marks a key topping pattern under a classic head and shoulder is forming on GBPUSD 4-hour chart, with the neckline underpinned at the $1.7930s-- the 61.8% retracement of the rise from the $1.7485 low to the $1.8668 high. Head-and-shoulder formations (bearish patterns) have successfully proven their validity with GBPUSD, whether on weekly or hourly charts. Continued selling in Asian and equity bourses seen creating another difficult day in Wall St, which is bearish for high yielding GBPUSD. Overnight USD Libor rate surges to new record highs, USDJPY capped at 105.30, EURUSD seen breaching below $1.43 to $1.4270.


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