GBP-USD prediction may 16 2012

forex trading outlook today - GBP-USD prediction may 16 2012 : The sterling has quickly left behind the 1.6000 mark as jitters surrounding the euro zone were growing exponentially after Greek officials couldn’t deliver a solution to the political crisis in the country. As a direct consequence, new elections will be held within three to five weeks.

The stubbornness of the pound has finally gave up, joining its European peer in the sell-off, and trading in the mid 1.59s ahead of the opening bell in London.

UK’s unemployment rate is due later on, although market consensus expects the rate to come in unchanged at 8.3%. Instead, market participants will center their attention in the BoE quarterly inflation report.

As of writing, GBP/USD is down 0.24% at 1.5953, and a dip below 1.5895 (low Apr.18) would bring 1.5830 (MA200d) then 1.5808 (low Apr.10) and 1.5801 (low Mar.26).
On the upside, resistance are located at 1.6114 (high May 15) followed by 1.6140 (MA10d) then 1.6143 (high May 11) and 1.6182 (high May 10).

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