16 July 2009

GU Analysis
All the better than expected UK and US resuslts had sent market sentiments on a high note. The FSTE rose 2.5%, more than 100 points, while the DOW rose 3% gaining more than 250 points.

GU broke the 1.632 barrier and hit the peak of 1.646 yesterday. In terms of support, the 1-hour chart is supported at the strong EMA200. The pound did a retracement this morning, back to 1.638.

Today there is no major news from the UK. So it is all technical in the Europe market. Focus will be on the US unemployment claims.

From the technical point of view, support is at EMA200 on the daily chart at 1.632. A rebound may help the pound to hit immediate target of 1.65. On the down side if the support is broken, the next support is at 1.62.

Trend: up, provided support is maintained at 1.632.