9 June 2009

GU Analysis:
The DOW dipped 130 before a last hours spike to positive ground, ending a little more than a point. Signs that enconomy is really recovering and fear missing out the opportunity may have caused this spike.

On the UK side, The Bank of England is proposing an extension to its Asset Purchase Facility to buy secured commercial paper as part of its plan to restore liquidity to credit markets. Plus this morning a better than expected housing news showed sign of steady UK recovery. But of course, the recent scandal in UK may threathen the political stability of Gordon Brown.

Nevertheless, the pound, in spite a absence of news rally up from its daily EMA21 at 1.587 and ended 1.610.

There are no major news today, until Treasury Sec Geithner Speaks at 2230hrs SGT.

Looking at the technicals for clue, the pound has not traded out of its 1.58 and 1.62. CCI has showed some sign of reversal up but its a bit early to conclude.

If pound break up at 1.62, it will be bullish again, heading towards 1.626, then 1.645.
If it hit below 1.58, it will head towards 1.552, then 1.515.

Trend: Bullish, but expect side way trading within band, before any strong direction indication.