15 June 2009

GU Analysis:
No major news today. But look out this week for CPI, Claimant Count Change, a speech by Mervyn King and Retail Sales that will move the British Pound.

With no news the fall will be upon technical. Pound has retreated from a high of 1.666 and now looking at the daily chart, a double top formation.

Support is found at a similiar strong line at 1.58.

This means that breaking either 1.666 or 1.58 will set pound clearly in direction.

For today it may be unlikely for this to happen and thus we look short term at the 1 hour chart. EMA200 pose a strong support at 1.634 while 1.652 pose as it resistance.

Trend: Bullish, but expect side way movement trading within 1.634 and 1.652.