The Musings of Faith

Yesterday’s fall in price breached the 50% Fibo of the larger move from 1.6260 to 1.6843. Technically, this up trend is over. I am expecting more downside with price moving to 1.65 and possibly even reverse completely to 1.6250. Fundamentally, BoE Governor King pretty much sealed the deal telling markets that a weak GBP is good for exports and that quantitative easing is good for the economy. Sterling dropped like a stone from those comments. A market environment with technicals and fundamentals lined up gives the short pound trade lots of confidence. I’m short GBP.

But as usual, trade what you see not what I think.