GBP/USD - Technical Analysis (June/28/07)

what happen next?

wait until USD interest rate statement. i put sell stop on 1.9969 ..strong support on 1.9895 (if it's break then will down far)

Fundamental analysis (GBP) by Admin

On Wednesday, Sterling got pressure against the USD after break the resistance at $2 come up with the expectation of higher interest rate next week.
Sterling down 0.2% to $1.9950, economists expect the interest rate will be 5.75%.
John Gieve, Deputy Governor of Bank of England stated on tuesday, he gave vote to rise the interest rate in order to hold the demand of credit.
Towards to Bank of England's decision next week, market will focus on this meeting, the result could be use to measure the effect of the hikes interest rate since August, 2006.

Fundamental analysis (YEN) by Admin

Yen strengthen on Wednesday when the volatility of the stock exchange and the worry about the down of US mortgage sector, let trader to stop carry trade.

Review of Fundamental Analysis (USD) by Admin

USD weakened against Yen on Wednesday, June,27, after the report of Durable Goods Orders US (May) is lower than expected.
Trader become more wary to fluctuation on the carry trade after the volatility of the global market focus more on the US mortgage sector.
The actual Durable Goods Order down more than expected to -2.8% from 1.1% on April.
Dollar weakened 0.7% against Yen at 122.34.