17 Aug 2009

GBP/USD Analysis:
Last week pound took a fall, it failed to break 1.67 and instead head lower to 1.64.
The market looked as they are taking a breather. The Dow and S&P has made new high, so it is time for some consolidation.

BoE announcement on the extended use of 50billion pound has hit the pound hard. Despite the better economic results from France,German, and even UK, it seem that both Eur and GBP choose the opportunity for some selling consolidation.

The is no UK news today. From the technical, pound has been trading within 1.64 and 1.67. The resistance has been lowered to 1.66, frank by daily EMA55 and EMA21 respectively.

Moving lower would be EMA100 at 1.62, while moving higher, pound has to clear 1.67 then 1.682.

Trend: Morning has been under alot of sell pressure. Without news, the pound may not move further below EMA55 too much. Possible of a rebound from 1.64 towards 1.655.