What a Week!

I miss a few days of Forex action, and the GBP/USD pair falls almost 500 pips.

What's the reason for the monumental sell-off? Well, as best I can tell, there are four main contributors:

• Service PMI breakdown
• Big oil discovery in Gulf of Mexico
• UK Industrial Production on the median
• Turmoil around the imminent departure of British Prime Minister Tony Blair

What's good is that I forgot to actually place the order I described in my last entry. And its a good thing too, I would have given up some pips.

The next question is what's coming up this week? Well, we have Retail Sales coming out on Tuesday 9/13, and CPI on Friday 9/15. Perhaps a better than expected Retail Sales report will scare folks into thinking the Fed will raise interest rates, or lower than expected CPI would do the same. Either situation will result in the Sterling falling further.

My plans for tomorrow are to buy at 1.8625, as it is support according to my consolidation chart:



The T/P is set at 1.8655, the S/L is set at 1.8895.