Cocoa and the Pound

By: Peter Mooses of RJO Futures

With possible signs of tightening in supplies out of West Africa we’ve seen cocoa rebound this week. July cocoa gave back some of its gains today though as we saw the British Pound take off. The Pound was up as we waited for news from the ECB. When news broke that the ECB left interest rates unchanged today for the sixth straight month the markets were given a lift. After May’s sell off in the Pound there is plenty of upside potential to get back up to April’s levels.

Technically on the July ’12 cocoa chart you can see yesterday’s close above the 9-day moving average which continues to signal a positive trend. Support is at 2101 and 2039 and resistance is at 2197 and 2231 in ICCN12. If we can break these resistance levels look for the bullish trend in the short-term to continue.

July ’12 Cocoa (ICCN12)-Daily Chart

June ’12 Pound (6BM12)-Daily Chart

Peter Mosses
Contact Peter Mooses
Disclaimer: Trading in futures and options involves a substantial degree of a risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

One thought on “Cocoa and the Pound

  1. I knew I've been sleep deprived but now I know to what extent. When I read the title 'Cocoa and the Pound', I thought it was going to be a post about a lost dog.

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