TMN has discussed the weekly chart on the USD a few times over the last week and is convinced that the current set up is, from a purely technical viewpoint, the strongest in years. The up thrust that will get released here soon might be of immense nature. Until now we had to be happy with baby steps, the next baby step would a few firm daily closes above the mid BB on the daily chart you will see below (currently @ 77.74). For confirmation that we are on the right path, TMN wants to see weekly closing lvls above the 61% Fib lvl 77.93 (2008 low vs 2009 high).
click on chart to enlarge
The mix between austerity and green light for the BOE does not go down that well for GBP, as expected. GBP needs to put in a few daily closes below the support cluster around 1.5654 (50dma) and 1.5637 (50% fib between the 2009 high and the 2010 low) to confirm more downside to come. Although some indicators are looking close to oversold, TMN wants to stick with the short GBP recommendation for now and wait how next week plays out.
click on chart to enlarge
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