27 Aug 2009

GBP/USD Analysis:
The pound was heavily sold yesterday. Eur German brought good news in their business climate, while the US has good news in their durable goods sale and new home sales.

There look clearly that the USD is strengthening after weeks of shorting.

Today at 1400hrs SGT the first in the week on UK major new is Nationwide HPI. A reflection on housing inflation, it is a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity. According, the expected is better than forecast. But whether this piece of news can do the reverse for the pound is not clear.

WMA5 went low and pass EMA55, heading towards EMA100. The price was supported by EMA100 at 1.617 and possible for it to go down to 1.612. WMA5 has not broke EMA100, so it is whether pound will continue to push down towards EMA200 at 1.602 or rebound.

If it rebound, resistance is at 1.6405, then 1.654

Trend: Expect the down to continue. But as for today, they may be some halt as pound is near EMA100. Some consolidation is expected. Looking at the candle stick formation, after 3 black crows, yes the trend is down, but also expect a momentarily up for today before and big down or..

For those who hold a long at 1.623 yesterday, continue to hold, but remembered to let go at 1.612. You may set your TP at around 1.635 to 1.642.

If price go down below 1.612, it will be a good short to 1.602 to 1.6595