Archived IMT (2009.06.07)

SHOOTING STAR ALERT: GBP/USD weekly candle chart shows a typically bearish formation known as a shooting star, whereby an initial high early last week prove unsustainable, ultimately leading to a close that is substantially lower. UK Labour Partys crisis helped initiate last weeks sell-off, but any extended decline in equities would quickly punish the already shaky sterling. Cable could potentially test an initial target of $1.5750, followed by 1.5550, with declining resistance at 1.6150.