7 Aug 2009

GU Analysis:
At 1900hrsSGT yesterday, the pound shot down almost 130 pips in 5 min when BoE announced an increase in assest buy-back to top 125 billion pound by another 25 billion pound. 150 billion pound was the approved and now it exceed by 25 billion pound. Investor see it as printing more pound, thus weaken it.

Today at 1630hrsSGT UK PPI report. Then in the evening 2030hrsSGT US Unemployment rate.

The expectation may follow the sentiments of yesterday big drop and further bring the pound to its support level. The expected unemployment is to raise to 9.7%, more than forecast.

CCI has indeed show a downward momentum. From the sets of EMAs using the 1-hour chart, the price now is supported at EMA200 at 1.677. The next support is at daily EMA21 at 1.6645. An immediate support is at 1.6705.

If pound gain upward, resistance is at 1.694, then 1.7005.

Trend: Down and a possibility for pound to move side within range of 1.67 and 1.69, till the release of news to determine direction.