Thursday, 24 May 2012

GBP-USD Down May 24 2012

forex trading outlook today - GBP-USD Down May 24 2012 : Having lost the 1.5700 handle in early Asia, the GBP/USD fell across the board and plunged in the London morning to 1.5640 low ahead of the revised UK Q1 GDP (QoQ) from -0.2% to -0.3%.

The bouncing movement extended ahead of the American session and retraced all daily losses to above 1.5700 psychological level. The pair has reached a high at 1.5729 as the market digests 10000 more continuing US claims than expected, at 3.260M by the end of May 12. Initial jobless claims dropped by 2000 as expected to 370K.

"While we could see a corrective rebound over the next few sessions to unwind an oversold state the structure remains negative while under 1.6063, with the risk seen for a crack at key support at 1.5603 (12th March low) then psychological 1.5500 in a much deeper retracement of the 1.5235 advance", wrote MIG Bank analyst Howard Friend.

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