In 4 hr chart, GU is still uptrend but GU is near the resistance 2.0461. If GU breaks the resistance 2.0461, GU will be 2.0537, 2.0627.
In daily chart, cable hasn't broken the uptrend line (yellow diagonal lines). Plus from the fo rexfa ctory source, cable forms the triangle chart pattern (or buyers and sellers fight each other). If you want to be really safe, just wait until cable breaks either red/blue line (resistance) or magenta line (support).
In 4 hr chart, if cable breaks the resistances (red line and 2.0208 blue line), the target may be 2.0314. If cable breaks the support (yellow line and 2.0091 blue line, the 1st target may be 1.9988, the 2nd target 1.9910 
2.0346 target long if cable can go through the two resistances (horizontal line 2.0213 or 1st target, 2.0232 or 2nd target)Sept. 8 (Bloomberg) -- The pound fell against the euro this week on speculation U.K. interest rates have peaked while the European Central Bank will increase them further this year, eroding the British currency's yield advantage.
The Bank of England and the ECB kept their benchmark rates on hold on Sept. 6 as they assess the effect on their economies of losses linked to U.S. subprime mortgages. While the BOE said inflation ``may remain around, or little below'' its target, the ECB noted price risks ``lie on the upside.''
``We believe the U.K. bank rate has now reached its peak,'' said Richard Dingwall-Smith, chief economist at Scottish Widows Investment Partnership in Edinburgh. ``The risk the bank may push rates to 6 percent or beyond has receded in light of the ongoing global turmoil in financial markets.''
The U.K. central bank raised its benchmark rate to a six- year high of 5.75 percent in July and the ECB increased its rate to 4 percent in June.
The pound traded at 67.79 pence per euro late yesterday in London, from 67.65 pence on Sept. 5.
The U.K. currency also fell against the yen as Asian stock declines and concern over the credit-market crisis prompted investors to cut higher-risk currency holdings funded by loans in Japan.
The pound was at 231.30 yen late yesterday, compared with 233.51 on Sept. 6. The U.K. currency had its biggest decline in three months against the yen in August as concern over the financial-market rout forced investors to reverse so-called carry trades.
The Nikkei 225 Average fell 0.9 percent yesterday and 2.7 percent this week. The Morgan Stanley Capital International Asia- Pacific Index of regional shares declined 0.3 percent.
U.S. Payrolls
The pound rose to the highest in a month against the dollar after a government report showed the U.S. economy unexpectedly lost jobs last month for the first time in four years.
The U.S. non-farm payrolls data fueled concern the credit- market turmoil is spilling over into the broader economy.
The pound traded at $2.0295, from $2.0237 on Sept. 6. The currency has gained for three weeks against the dollar.
The three-month rate banks charge each other for pounds rose to the highest since 1998, suggesting lenders are still reluctant to offer cash to the money market for fear losses linked to U.S. subprime mortgages will hurt their counter-parties' ability to pay back loans.
``Unless we see a clearer picture of what actually is happening with the subprime sector, the problem in the credit market will persist,'' said Marios Maratheftis, a currency strategist at Standard Chartered Bank in London. ``In this environment, people are reluctant to put strong bets on high yielders, including the pound.''
Gilts Gain
In carry trades, investors get funds in a country with low borrowing costs and invest in one with higher interest rates, earning the spread between the borrowing and lending rate. The risk is that currency market moves erase those profits.
U.K. government bonds had a second weekly gain as investors bet the distress in financial markets will hurt the economy. Yields on 10-year gilts fell to 4.97 percent, from 5.04 percent at the end of last week.
The price of the 4 percent bond maturing in September 2016 rose 0.57 from last week or 5.7 pounds per 1,000-pound face amount ($2,095) to 93.13.
Economists in a Bloomberg News survey expect the 10-year yield to rise to 5.32 percent by the end of this year.
The yield on the December interest-rate futures contract fell 11 basis points to 6.34 percent yesterday. The contract settles to the three-month London interbank offered rate for the pound, which has averaged about 15 basis points more than the BOE's key rate for the past decade.
To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net
Sept. 4 (Bloomberg) -- U.K. retail sales picked up in August as sunnier weather encouraged shoppers to buy more food and drinks, the British Retail Consortium said.
Revenue at stores open at least a year rose 1.8 percent from the same month in 2006, up from 1.2 percent in July, the lobby group, which represents 80 percent of Britain's retailers, said today in London. Total sales rose an annual 3.7 percent. The survey covers the period from July 29 to Aug. 25.
Consumer spending, which quickened in the second quarter, is helping to drive the U.K.'s fastest growth since 2004 and has yet to show signs of weakening from higher borrowing costs. The Bank of England will probably keep its key interest rate unchanged at a six-year high this week after five increases in a year.
``Food and groceries have done significantly better than in June and July,'' said Kevin Hawkins, the group's director general, in an interview. ``The August figure is a big improvement.''
Shoppers bought barbecue and picnic foods, chilled drinks and beer and wine as the weather improved in August from July, the group said. England and Wales had the wettest May, June and July since records began in 1766, according to the Met Office, the government's weather agency.
John Lewis Partnership Plc, Britain's biggest department store company, said Aug. 31 that sales at its Waitrose supermarket chain rose an annual 6.4 percent in the week through Aug. 25.
Rate Decision
Bank of England policy makers begin a two-day meeting tomorrow to decide on interest rates. Inflation slipped below their 2 percent target in July for the first time since March 2006. All 60 economists surveyed by Bloomberg News predict the bank will keep the rate at its current 5.75 percent on Sept. 6.
The Bank of England should avoid raising the benchmark rate because inflation is showing signs of receding while consumers are starting to respond to higher borrowing costs, Hawkins said. Britons have record debts of 1.3 trillion pounds ($2.6 trillion).
``The last thing we need is another increase in interest rates,'' Hawkins said. ``The five successive rate increases are now having an effect.''
The annual gain in same-store retail sales was lower than the 2.5 percent increase recorded for August last year, the group said today. A separate index of U.K. retail sales slipped to the lowest reading since November this month, a report by the Confederation of British Industry showed Aug. 30.
Government data have yet to show a weakening consumer. Spending rose 0.8 percent in the second quarter, up from 0.5 percent in the previous three months. Retail sales rose the most in five months in July.
The U.K. economy will expand 2.9 percent in 2007, the most in three years, according to International Monetary Fund estimates published July 25. That compares with forecasts of 2 percent for the U.S. and 2.6 percent for the 13 euro countries and Japan.
To contact the reporter on this story: Svenja O'Donnell in London at sodonnell@bloomberg.net .
Last Updated: September 3, 2007 19:00 EDT
