10 June 2009

GU Analysis:
After a short retracement the release of the UK RICS House Price Balance, the pound began its ascend. On the US side, Treasury Sec Geithner said that the US government will perform Regulatory Overhaul on the financial system to reduce the effect of credit crisis on firms, in addition the Treasury will start Toxic Asset removal plan.

Today at 1630SGT, UK Manufacturing Production and Trade Balance. All this will point the direction of a recovering economy. The UK trade balance is at 2030SGT.

On the technical side, the pound break the EMA200 on its 1-hour chart, it did a good retracement on the daily chart all the way touching its 68% at 1.6334.

This could be a start of a C-wave, the start of a bigger up with the potential to hit 1.68, then 1.74. However on the hind side, this could also be just a B-wave, for a potential big C-wave down, supported at 1.58, then 1.55.

Today resistance is at 1.645, then 1.658, Support is at 1.623, then 1.600.

Trend: Bullish, beware of resistance.