11 Aug 2009

GBP/USD Analysis:
Yesterday pound broke and 1.67 support and also the daily EMA21, heading and hit EMA55 at 1.644, despite the absence of news

This morning RICS House Price Balance brought better than expected report and thus push the pound from further slide. It has since rebound 60 pips from yesterday low.

Today at 1630hrs we have UK Trade Balance. Only a much deeper deficit will hurt the Pound.

Support is at the daily EMA55 at 1.644, then 1.625, before 1.6137 at daily EMA100.

Resistance is at 1.658, then back to 1.670 again.

Trend: Up, but possible side movement as the market consolidate before making any direction.