GBPUSD moves back higher. The high for the day at 1.6549 and 1.6589 – high close for 2009 – looms above.

Written July 20, 2009 at 2:27 PM EST by  

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gregmike-04013

The GBPUSD has moved back higher bouncing off the 100 bar moving average at 1.6509.  Nevertheless, the activity is slow and the high reached earlier today at the 1.6549 has not been threatened.  The recent highs have only reached 1.6536. 

Overnight, the UK Public Sector Borrowing for the month of June will be released.  The expectation is for the month on month deficit to decline to 15.5 billion pounds from May,  but from the same month last year, the deficit is expected to increase by 8 billion – doubling the deficit.  The IMF warned last week that the UK lacked a credible plan for their budget deficit. This should keep a lid on the pounds gains.

gregmike-04014

Above,  the high for the day at 1.6549 looms as does the 1.6589 level which is the highest closing value for 2009.   A move below the 100 bar moving average 1.6510, would likely lead to a further move lower.

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