Archived IMT (2009.06.05)

STERLINGs POLITICAL CRISIS unfolds as the third member of PM Gordon Brown submits his resignation, further highlighting the fragility of an already scandal-laden Labour Party. Sterling traders were already doubting GBPUSDs sustainability at the high $1.60s and the political crisis provided ideal catalyst for the downturn. GBPUSD Weekly chart shows SHOOTING STAR candle, which is a classic bearish pattern occurring at the top of the market, suggesting reversal for next week. GBPAUD breaks out of inverse Head&Shoulder formation, which is AUD positive. EURGBP soars past 0.8840, looking to target 0.8950 into next week.