This morning GDP number from England was a downer. Looks like the over correction bottomed at 1.57507. Price action is running paralell to previous uptrend starting Jan. 6, 2011. A fib retracement to 50 would put us at 1.58816. 130.9 pips(not Bad).
It's is end of january, doesn't this have a seasonal effect as well?
Risk gets not always rewarded, clever risk yes :)
The January effect (also known as the turn-of-the-year effect or the January anomaly) is the most important calendar anomaly. The returns on common stocks in January are much higher than in other months, and this phenonenon is due to smaller-capitalization stocks in the early days of the month.
"According to an old saying, as January goes, so goes the year."
Fosback (1993), page 151