7 May 2009

Good news in the US, coupled with DOW gaining 100 points yesterday sowing the strength of the recovery. However, this only weaken the pound, but it seem contridicted as at now, the price has near the top of the resistance at 1.515.

Major news from MPC out in the afternoon. That news might bring a break out of the pound to new high towards 1.538.

Meanwhile in the morning, will the market trade the GBP down from its resistance? Wait to see. The next resistance is at 1.526. It may retrace to 1.5076, then 1.5056. Support still strong at 1.50.

From the chart GBP has been oversold by more than 150% and may start is bear run.

Overall direction is now mix with both bullish and bearish sentiments.