29 July 2009

GU analysis:
The rally for the last weeks in the equity market has come to a slow down, after achieving high for 2009.

The pound hit 1.6557, but began to retrace at 1600hrs SGT all the way to 1.639. All the news were released only after 1800hrs SGT. The US consumer was out at 2200hrs SGT was worst off than expected, but did not pull the pound further.

Toady at 1630hrs SGT, UK Net lending to Individual will give another view of the recovery in the banking and business sector. The numbers is expected to raise, indicating that consumers are ready to borrow.

Likewise at 2030hrs SGT, US Durable Goods will give indication of a recovery by a better than expected results. More orders of mechinery shows the road to recovery.

The technicals look tricky. Cable is constraint within 1.652 and 1.64. It can break in both direction, giving the fact that the price has been sqeezing in this range for more than a week.

CCI has showed sign of consoldiating down. Support at EMA21 daily is at 1.638, while EMA55 which is next is at 1.6245.

Resistance is at 1.652 then 1.663.

Trend: Down. The news release may affect the movement, but general sentiment is down based on CCI.