29 Jun 2009

GU Analysis:
GU is still contain withing 1.66 and 1.62.
All the major news last week has fail to determine the direction of this pair.

Equity market is also not making head way in any direction.

Today UK major news at 1630hrs on Mortgage Approvals. This will reflect the perfromance of the bank and indicate whether the banks are lending. If the economy is recovering well, lending should increase.

In the Japan hour of trading, pound has been heading down from 1.652. It has rebounded at EMA200 on the 1-hr chart. This form the support at 1.645. Resistance is at 1.655.

Breaking 1.645 will permit the pound to reach support at 1.639 (EMA21 on the daily chart).

Trend: ? Beware of breakout and trade within range today. If out of 1.66 and 1.62, relinguish short and long position respectively.