News may help Pound

Halifax House Price Index came in at -2.5% after the forecast was -0.3%. Worse than expected result and has led to a drop of the Cable.

The Pound Dollar is sailing along with no direction. FOMC minutes and Industrial Production may change that.

Sterling has support at the 1.9700 region and is currently entering the sell zone but the day has just begun. Check the sell zone confirmation again tonight or tomorrow morning.

The Interest Rate Statement on Thursday is sure to be key and it is widely expected the BoE will cut rates by 0.25%. ECB are expected to keep rates unchanged. Trichet and Bernanke will be talking on Thursday.

So, we have quite a lot of news out this week so ensure you manage any open trades.

Good trading.

Forex Analysts
Anne Chapman & Javid Shaik