GBP

Thanks for your comment Subway. I spotted you too pretty quick. Those who rubbish tech analysis and rely only upon their fundamental opinions must feel completely and utterly lost on the map most of the time. I have my fundamental opinions but the market has taught me to keep them to myself except for short term calendar eco stat announcements which can support or otherwise my tech bias.

I make a point of always identifying 3 alternate counts on my charts for all timeframes I monitor. I have my preferred count in play for trading and I trade that until such time as the count is proven wrong.

On present position of GU my work tells me that the 5296 low reversed at the 38.2% level. The pattern down to that level does not give me a clear corrective so until the 5997 high is taken out it could prove to be only the first leg down of a corrective with the wave B up in progress and wave C down to follow which would end slighly below the 5296 level. I prefer your bias with the 38.2% level being a bullish ending to the corrective and new highs immediately ahead.

Best to you and lets compare notes at key levels.

I'm still alert for a possible reaction at 1.5935 for the GU. Potential 100% symmetry in the pattern from 5296 low. Not high confidence call but the level is in the way of retest of the 5997 high.

I would expect a few more positive indicators from the UK to rule out QE2.

Ashraf - what happens to the GBP/USD rate, when BOTH the US and the UK are doing QE2? What should we expect to happen?