Pound selling accelerates on risk aversion.

The recent rally on the pound was eventually blocked this week when doubts  over the efficiency and clarity of the U.S rescue plan grow.

The Pound which was scratching the 1.5 level against the dollar two days ago, is now  heading towards the lower levels of 1.4.

In fact, the GBPUSD has now corrected 50% of its last up move by hitting lower than 1.4260

First support area for GBPUSD is at 1.4157, but the real barrier is of course 1.4.
If any buyers are waiting for the Pound, it is likely to assume they are waiting around that area.

Generally, the risk aversion cycle is well in control over the market, however,  Pay attention to today’s economic reports : Euro-zone industrial production at 10:00 GMT, US Retail Sales and Employment claims at 13:30 GMT,  these may affect the current environment.

Z.Georgi

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