UK Retail sales fell 0.4% – The first decline in three months. This sparked a very volatile aftermath in the price of Sterling but it soon stabilised. Due to the deteriorating housing market we also expect a possible rate cut from the BoE if the recent liquidity infusion does not stabilise the market

GBP/USD – No Trade Zone. Price is still finding support at the violated current trend resistance line (blue line) but we can’t see any new highs…Therefore we have to wait for either a bearish trending market rhythm or for new highs to be taken out – especially the 1.9815 high

The EUR dived sharply due to the weaker than expected IFO data. Consensus was for 104.3 but the actual figure came out at 102.4

Now the top at 1.6020 is really starting to look like a major turning point. Nevertheless, we are bearish on this one anyway

EUR/USD – Bearish Trading Condition. The Wedge has been violated to the downside as anticipated but keep note of 1.5720 as it might prove a significant support.