12 June 2009

GU Analysis:
US initial unemployment claims has start to fall. Good news, as this is the lagging confirmation that the economy is recovering. However, plaguing the situation is that Treasury yields retreated as the highest levels of the year attracted buyers to an auction of 30-year bonds. High interest means a stronger demand for US dollars.

The pound on the other side remain strong and has not retreated, it hit 1.662. FSTE advance.

On the technical side, CCI still show sign of a bull. It has potential to climb. As there are no major UK news today, its all technical.

Pound hit high at 1.666 last week. This give a good breakout price for pound to sail towards 1.77.
Is this part of a B-wave turning to a C-wave down or is this the start of a C-wave towards 1.77?

Resistance is at 1.67, then 1.69-1.702, the physiology mark before the big up above 1.7. 1.82 is the 50% fib retracement of 2.0156-1.3491.

Support is at 1.6519, then 1.641, then 1.6250

Trend: Bullish but may reverse at resistance 1.67 to become a C-wave down.