24 Jun 2009

GU analysis:
Pound hit low at 1.620, hitting EMA21 on the daily chart and rebound follow better than expected UK Mortgage Approvals.

It followed in the US, an increase in Housing Sales.

Today, The Confederation of British Industry (CBI) publishes this figure on a monthly basis, and focuses on the change in sales volume. Last time, this important figure was very bad - at -17 points. This time, expectations are low. It’s expected to remain there. In past releases the Pound shook after this publication. Time 1800 SGT.

From the technical side, pound is still contain within 1.62 and 1.66.
It has form a wedge formation bounded by the trend line joining 3Jun, 11Jun and 19Jun and the EMA21.

Trend: ? Given the better news, pound should hit higher, but again, watch the support and resistance.