GBP/USD Extends Falls on Huge Deficit

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The deficit in the UK’s trade balance leaped to 9.8 billion pounds, much worse than 8 billion that was expected and 7.8 initially announced last month. The figure for last month was revised to a higher deficit of 8.6 billion.

This high deficit in September 2011 tops the 9.7 billion deficit recorded in December 2010. This makes it the worst deficit in many years.

This adds to the pressure on GBP/USD. It already slid towards the release as European pressures mounted, and now it extends its falls and finds support only at the round number of 1.60.

Further support below this line resides at 1.5910, followed by 1.5850. Resistance is at 1.6110, followed by 1.62.

For more on the pound, see the GBP/USD forecast.

Tomorrow we have a rate decision in Britain. No changes are expected after the decision to expand the QE program made last month, but some commentators still expect a small expansion due to the current situation of the British economy.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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