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Welcome to the FXReturn.com London Forex Market Call for February 11th.,2011. GBP/USD: Closes near the highs of an outside trading session as the market rallied from a 5 day low and through resistance at 1.6058. Consecutive closes above the 30 day average will re-establish the upward momentum with 1.6276 as the next upside objective. January's pivot high at 1.6058 remains to be a key support/resistance area. Technicals are oversold indicating a rally into the 1.6276 is on the horizon | GOLD: Closes near the highs of the session as the market finds support at the 10 day average keeping the bullish temperment of the market intact. Consecutive closes above $1360.2 will extend the rally into $1392.5. A close below $1352.9, however, will re-establish ...

Market Review - 10/02/2011 20:14 GMT

Euro tumbles on much lower-than-expected U.S. weekly jobless claims data

The dollar rallied broadly (except vs the British pound) on Thursday after U.S. weekly jobless claims fell to a 2-1/2 year low last week.

U.S. weekly jobless claims last week dropped to 383,000 versus the expectation of 410,000.

In sharp contrast to the previous session, euro was under heavy selling pressure throughout the day in Asia, Europe and U.S. session on Thursday. Euro continued its intra-day decline in NY morning after the release of much lower-than-expected U.S. weekly jobless claims, the single currency eventually tumbled to a low of 1.3577 b4 recovering ...

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Cable is still struggling at 1.6000 level and it seems that this level is acting as a strong support area now. There is a possible H4 channel and price is near to the beneath bond now indicating it could start to resume its bullish trend after touching it.

Also there is short-term down-sloping trendline and we can see it better on the hourly chart:

So in order to go short it’s better to wait for a break below the beneath bond of the channel which will confirm a breakout of 1.6000 support level as well. And in order to go long wait for an hourly close above the hourly trendline.
I want to say that my bias is still bullish and I’m more comfortable with long setups.

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