3 June 2009

GU Analysis
UK Construction PMI showed sign of easing and that was a tripple followed, last week Halifax HPI, Monday's Manufacturing PMI, yesterday Construction PMI.

Today we have Service PMI at 1630hrs SGT.

The pound start to retrace when it reached 1.65, dropping almost 150 pips before this PMI news push the pound back to almost 1.66. All the good news will continue the rally in pound.

At the US side, good housing news has rally the DOW up. Today we have unemployment rate, which may top 9%, but showed sign of easing.

Now, what may slowed the pound down is probably some profit taking and retracement, technically. The CCI showed sign of tapering or squeezing, indicating slow down and side way movement.

Resistance is at 1.69 and 1.702 region. The next one is at 1.77 then 1.82 (50% fib retracement of 2.0156-1.3491).

Support is at 1.638, then 1.623.

Overall trend is bullish, but expect retracement and some side way movement, before the market gain new high or alter its course of direction.