11 June 2009

GU Analysis:
US stock fall on fear of an increase in debts. In order to buy these treasury bonds, Feb has raised the 10 treasury bonds yields. The increase in interest has cause some fear in inflation.

Bank of England policy maker Andrew Sentance said the U.K. recession may be “bottoming out,” setting the scene for a recovery as soon as this year.

Today we have the US announcing its retail sales and unemployment, all pointing to an expected retail sales figures, better consumer confidence. Watch out for unemplyment claims at 2030hrs SGT.

Technically, the pound form a doji, point to a possibility in either direction. CCI continue to show up trend. At the 1hour chart, it is support by EMA21 at 1.634, then EMA200 at 1.618.

Pound went high yesterday to 1.6474 and has since retrace to its 50% at 1.6357, nearing its 68% at 1.6384.

Resistance is at 1.645, then 1.657.

Over trend: Bullish, due to a weak dollars and CCI confirmation. But caution as this may be the turning point for the start of a C-wave down.