June 10, 2008

Buying GBPUSD, betting against the words

I think the hawkish tone from the Fed's officials had been the main support for the greenback in recent days but the effect could diminish soon.

Current data from UK are better than expected, especially Industrial Production, or even house prices.

Recent data are not supportive for the dollar. Trade deficit has been widened more than expected.

So I decided to open a long position on GBPUSD at 1.9528. I would increase the size if the technical conditions improve in the coming hours.

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