Economic Contraction Pressures British Pound

British Pounds started the New York trading session under pressurefollowing the release of a report overnight showing that the economyhad contracted 1.9%.

British Pounds started the New York trading session under pressure following the release of a report overnight showing that the economy had contracted 1.9%. This negative news comes two days after the government announced a budget deficit of close to 90 billion pounds. Both pieces of news indicate that the Bank of England may have to get more aggressive in its efforts to prevent the recession from worsening.

The daily swing chart indicates a down trend.  The trend turned down earlier in the week when the market crossed 1.4602.  Currently we are retracing the last swing down from 1.5068 to 1.4397.  The target zone is 1.4733 to 1.4812.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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