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| GBPUSD DAILY |
Cable finally continued to head south versus the US dollar and the Japanese yen on Wednesday's trading in preparation for the 4th of July US celebration but more importantly as the weaker than expected PMI data expects the Bank of England would seriously consider for more stimulus on Thursday. However, it does remain to be seen before any would-be speculation that it would.However, as a net counter-trade position on the GBPUSD was initially added prior to the release of the news. The Libor scandal have confirmed the higher risk of Cable to loose its grounds once the parliamentary inquiry would begin.
Although, the main highlight is the British Pound (Cable) currency is getting a beating from the Libor rate scandal as Barclay's former CEO B.Diamond faces the Parliament. As some of the Regulators are trying to dissect and determine whether other closely related banks deliberately tried to influence the Libor rate by intentionally or un-intentionally submitting inaccurate data during the financial crisis. Currently, working at the 1.5610 from a registered consolidated high at 1.5720 have shown its effects from the fundamental scandal on the Libor rate. Initial support is still at the 1.5580 and once prices move lower then the 1.5480-1.5510 would be the next testing area of support.
Thus simultaneously spilling over to the GBP/JPY cross rate which have lost over 70 pips throughout the day from its recent high at 125.40. The up and down swing of prices have been expected however, these price action is more fundamental with a combination of a technical move.As for technical levels, supports are seen at 124.50 and 124.00 lower range; while resistances 1,2 & 3 is seen at the 125.00/.45 & .80 price levels. Pls visit our latest news on the GBPJPY cross rate at http://megatrade101.com/
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