22/05/2014: I have just BOUGHT GBP/USD at $1.68674 and SOLD USD/JPY at 101.617

I see this dip in Cable following from the in line reading of UK GDP as being a bit overdone in the near term. The basis of support comes in around $1.6850/55 and i see this as a  chance to buy. I still expect that Sterling will appreciate in the near to medium term.

I have placed my stop for Cable at 1.68250 (42 pips) which gives a little bit of room under the $1.6830 support. The positive near term outlook for Cable will remain intact until a breach of $1.6800.

 

On Dollar/Yen is see this jump today as a chance to sell. The initial reaction has already fallen over around 101.70 which is a resistance band and I see this as just a knee jerk reaction that will result in further pressure back on the lows once more. I expect 100.80 to be retested.

I have placed my stop on USD/JPY at 102.05 (43 pips) which is just above the pivot level around 102.00.

 

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