by Johan Kriek (jkriek@fxinstructor.com)

Key notes:

- 2nd UK Bank bailout sends GBP into the abyss

- Eurozone lowers growth forecasts, EUR seen lower

- Obama’s Inauguration today

- Overall, the bad news from Euroland is helping GBP, EUR lower

- UK CPI will determine trend today - (09:30 GMT)

Probability Studies

eur4

Bearish Trading Condition. Expect significant support at 1.2700, apart from that the trend remains bearish and as long as market rhythm trends lower the EUR will be situated in a bearish trading condition

gbp4

No Trade Zone, bearish probability. I am waiting for a trading condition to develop here to the downside. The GBP has moved with 500pips already and this move only seems like the start… A bearish cross on  the 1 hour stochastic will give me a nice bearish trading condition. The GBP has now violated the broadening formation to the downside so there is no support left as the most significant low has been taken out already

Watch GBP CPI today as this will be a serious inflation indicator. Also Obama’s inauguration could cause some volatility. Make sure your exposure/risk ration makes sense

Good luck, see you in the LTR

Johan Kriek