26 Jun 2009

GU Analysis
After a hit at 1.623, GU rebound strongly reacting strongly during US market. Now at 1.64.

DOW gave a 170 points gain, despite poor unemployment report, but better homebuilder and retailers report.

No major UK news. At 2030hrs SGT, US Consumer spending. It will probably rose in May for the first time in three months and home sales increased as Americans became more confident the recession will end this year.

Technically, pound is still trading within the band of 1.62 and 1.67. It has not breakout of this band yet. CCI looks down but has potential for reversal up.

Immediate support is at daily EMA21 at 1.634. Resistance is at 1.662

Trend: ? Up towards 1.66, and direction depends whether is break or rebound.