Sterling held above the 1.60 line having opened around 1.6060 it did fall sharply with the rest of the market to 1.5995 but the aberration was soon put to the back of investors minds as it rose to 1.6085 while the single currency floated between ..8693 and .8717 against the Pound. According to the Hometrack survey house prices in the U.K. fell by 0.9% in October and where 0.1% lower than a year earlier. It was the biggest monthly drop since January 2009.

UK - Almost three million homeowners would struggle to pay their mortgage if interest rates rose by just 2 percentage points, according to new industry figures seen by The Sunday Telegraph. UK - Unemployment among Britain's graduates is at its highest level for 17 years, according to figures released today, the Independent reports.

GBP/USD hourly – Defense of 1.5920 essential to allow for a potential extension to 1.6329/79

* Having cleared a key-resistance barrier at 1.6000/26 (int. 76.4 %/Fib.-projection) an extension to 1.6329/79 (weekly trends/76.4 %) has become more likely, but still requires a break above 1.6109 (last top) to be confirmed and to eliminate the risk of performing a countertrend rally only. * A break below 1.5920/1.5877 (int. 38.2 %/last low) would confirm the latter.

Last Friday, the USD went down against the JPY after the release of US economic data. However, the dollar index, a measure of the dollar's performance against a basket of six currencies, was flat as investors positioned for an initial debasement of the currency on the Fed announcement.

Moreover, and according to Thursday and Friday price action the AUD/USD managed to stay above the support level located at 0.9660 which has set the tone to move higher. And regarding the GBP/USD, Analysts are estimating that this pair is highly likely to return above the 1.6105 level. With forecasts of resuming up to the 1.6274 level , followed by the 1.6456 level.

GBP There's very little interest in GBP right now, events elsewhere dictating G7 moves. Data is light in the early part of this week, with GDP revision ahead on Wednesday. Until then I would expect current ranges to hold - CBL 1.5930-1.6100, EUR GBP 0.8530-0.8600.

The dollar weakened broadly on Thursday hitting a 7-week low against the Yen, a 28-year low against the Australian dollar and an all time low against the Swiss Franc. While the dollar might not be the most attractive currency because of the persisting QE by the Fed other currencies where seen gaining against the greenback. The Euro is still not the most favourable currency though either as euro zone debt issues are mitigating the currencies gains and diverting investors focus to more stable economies as the Yen, the Franc and also the Aussie. The dollar slipped as low as 81.28 Yen, and is seen getting closer to its 15-year low of 80.21 hit in November. As thin trading volumes because of New Year’s holiday tend to exaggerate currency moves it is possible for the pair to reach its post-war low of 79.75 hit back in 1995 and even breach it. Information on US initial jobless claims expected in later these days can give an additional hit of the country’s recovery.

The Swiss Franc is still hitting new all time highs against the US dollar which lost against the Euro as well during early Asian Trade on Friday. The Swiss Franc almost hit a record high against the Euro as well which managed to gain some of its losses and traded above 1.3300 against the Dollar during the night. The market is thinning even more today as both Japan and the UK will remain closed for the year-end.

GBPUSD

totally agree on the chart. I am expecting a continuation of the upward move since we closed on a new high on Friday. Then, we can fall...

very nice chart and the proper trend lines what a great chart i see here good dear very great work,

Is current price action just a small step down in the bigger triangle/wedge?

I've only recently started lookng at triangles so I could have labeled it up wrong. I've attached a weekly chart of GBP/USD that shows a triangle within a much larger triangle. Also, not the SSD negative divergence.

Made a mistake on my chart, see my next post.