1 June 2009

GBPUSD:
Halifax HPI for the first time the house index has stop falling for the last 20months. Today with Manufacturing PMI releasing at 2030hrs, it is expected to raise from 42 to 44, though under 50, but it will be good enough to see the pound continue on its trend higher.

Technically, GU has gain above support at 1.6, hit 1.62. It should face its first major resistance at 1.68. Though very heavily oversold, but CCI has indicated that any down is only short live. It may dive lower for some retracement to 1.597 and 1.579

Holiday in NZ, France and Germany and that will make the Asian and Europe trading session quiet, before the news at 2030hrs. Trading range is expected at 1.62 and 1.612. Any breaks from this range will allow GU to hit towards 1.64 then 1.68 or go down to 1.602 then to 1.597.

Overall, GU trend is still long.