6 May 2009

This morning 0700 SGT, UK gave some good news on Consumer confidence. The better than expected results may spur GBP to move higher. But of course, another important news that will be out is Housing Price Index (HPI) and Purchasing Manager Index (PMI) at 1630 SGT.

Japan is on holiday and thus we may not see any big movement, but my expectation is for GBP to move up before 1630hrs news before it deceide on the next direction.

Looking technically, GBP has gain new high above 1.516. It has done its retracement from 1.516 to now at 1.505, almost to 50% at 1.5. Giving at good support.

Looking technically at a macro level, GBP has reached a very much overbought position (using CCI 14) by almost more than 150%. It has not reverse, showing strength of reaching a level of 1.53 (resistance level at 100EMA)