Daily Cable Analysis

Quoting lexazver

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Well Sterling Index is also at the highest point in 10 years and it was there when intrest rates came out so it was priced in plus there might be profit taking since it couldnt stay above 1.97 level and another explanation could be that bankers try to squeeze long positions or that they think that this early interest rat hike would slow inflation and no further rate hikes will be necessary ,who knows, but you can find many expanation for this.

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Quoting 59fender

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first stop 1.9576 then1.9556 then1.9536

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Quoting mackaozy

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A quick overview of the UK Economy.

The reason for this is rapidly rising inflation rates in the UK. The point in raising interest rates is to keep the economy stable.

People in the UK are at a all time high of being in debt, taking out loans etc. The interest rate rises will also try and keep the housing market in check. With the average house price OUTSIDE London at £280,000 and London at £350,000 (approx) and the average wage at £25 k (please convert this to $ for you guys over the pond) you will begin to see a major problem people have here in the UK!!!!! And public sector workers (nurses,police,fire ambulance) on low wages 17-28k it's becoming increasingly difficult for people to do these critical roles and still afford a home. In the long term this could have a detrimental effect on the UK as already people are leaving these professions. So soon we will be left with no ambulances, nurses etc etc.

Hence why people are over borrowing to afford a house, hence the interest rate rises to try to keep it in check. I would predict an interest rate rise until the housing market slows considerably.

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Quoting mackaozy

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A quick overview of the UK Economy.

The reason for this is rapidly rising inflation rates in the UK. The point in raising interest rates is to keep the economy stable.

People in the UK are at a all time high of being in debt, taking out loans etc. The interest rate rises will also try and keep the housing market in check. With the average house price OUTSIDE London at £280,000 and London at £350,000 (approx) and the average wage at £25 k (please convert this to $ for you guys over the pond) you will begin to see a major problem people have here in the UK!!!!! And public sector workers (nurses,police,fire ambulance) on low wages 17-28k it's becoming increasingly difficult for people to do these critical roles and still afford a home. In the long term this could have a detrimental effect on the UK as already people are leaving these professions. So soon we will be left with no ambulances, nurses etc etc.

Hence why people are over borrowing to afford a house, hence the interest rate rises to try to keep it in check. I would predict an interest rate rise until the housing market slows considerably.

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Quoting Leugimp

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Just to put things in perspective - this weekly chart implies a move in the minimum to 2.0150

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Quoting mackaozy

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May I ask, how do you plot Fib retracement? Is it the two points that make either the up or down trend?

Please help.

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Quoting lexazver

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i think at some point in few years time we will have the repeat of 92 because you can not borrow indefinately, plus there is a rising number of people going bankrupt so something got to give at some point in the future

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Quoting mackaozy

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How is that??

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Quoting barakah

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Hi mac, i remember Monarch teaching these before but while i was flipping back to find the post for you i got lost. Too many pages, anyway, he has taught before in this thread if i don't remember wrongly.
Regards.

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Quoting monarch

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Very nice post!

I wonder how the people can afford this increase in living, continuing with the wages they have been earning. I posted a thought on this last week.

Having the Pound reach the 2's would be another blow for their economic state.

Fixme1too predicted before the end of the year a downward movement for the whole year of 2007, and partly, I would agree with him, especially after reading your post.

This is what I am watching for this month.

Setup is taking place for the price to go back up to either 1.9749, or to 1.9840. If this takes place on the Monthly, we would have a Double Top, and that would indicate the remainder of the year as a Bearish year.

We only have two weeks left this month, and were pretty much meeting every Fibo and Retracement moves like clock work on the Long Term. Now we are simply going through the motions of completing the Short Term perimeters.

There should be no panic amongst us, for we can surely see the direction the market has taken us, which gives us direction for where the market is going.

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