Are You Prepared?

A False Break on the Pound

On the Forex market the Dollar
index continued to trade around recent levels, regaining its strength
after a three day loss. An increase in volatility was felt during
yesterday’s session as the EUR/USD swung from side to side, while the
GBP/USD presented a false break.

Germany also had a mild
impact on the market, releasing its unemployment rate during morning
hours. The Euro-zone’s largest economy showed that their unemployment
problems could be improving, releasing a 31k result, compared to an
expected 44k. Even though the data had an immediate impact on the
EUR/USD, sending it higher, the major could hold on to its gains,
losing its steam throughout the session, as the negative U.S stock
session sent investors back into the Dollar.

The GBP/USD also
presented a volatile session as the revised GDP and the business
investment figures both showed negative results. The U.K showed that it
had shrunk by 2.4%, while the Business Investment dropped by -7.6%.
After climbing and presenting a break out at start of the session the
Pound reversed sharply heading back into range.  Yesterday’s session
was characterized by a false break, which ended dramatically lower. For
confirmation of a true break one should wait for a close above critical
levels.


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also avalible at dodjit and you tube, The economic fairy tale