GBP/USD Analysis:
This morning UK Consumer Confidence enjoyed its biggest monthly boost in more than 14 years in September as people grew more optimistic about the economic outlook than at any time in the past decade.
Coupled with yesterday news, it seemed that the series of good news brought a halt to the decline of the pound. It swing back from a low of 1.577 on Monday.
CCI should cut the lower BB today, given the spur from the good Consumer Confidence report. This means a stronger confidence for the pound to assume its move up. BUT the constraint comes with the daily EMA200 that sits right above at 1.602. A good breakout is needed at 1.604, before it can touch resistance at 1.61 then 1.62.
Support is at 1.58, then 1.55.
Trend: UP. It will be safe to play long before the resistance at 1.604 and support at 1.58
Wednesday, September 30, 2009
Tuesday, September 29, 2009
29 Sep 2009
GBP/USD Analysis:
With the WMA5 down below EMA200 on the daily chart, this signify a down trend for the pound. The pound may not hit 1.538, but technically it is a possibility if there is no reversal.
Yesterday, the equalities market did a good run, the Dow gain more than a hundred points.This morning Asian market continue the run up, so will the pound follow? It does, but will the momentum continue to the European market?
Today at 1630hrs, UK will be releasing news on GDP, Current Account, Mortgage Approvals and CBI Realized Sales. These will be news that will send the pound further down or reverse the trend.
Resistance is at 1.605, clearing that will bring pound higher to 1.62. On the hind side, support is at 1.538 then 1.500.
Trend: Not sure. One safer way to play is to wait for the news and determine what the direction of the pound be. The other way is to watch the CCI. It is now oversold. If it cut the BB, it will show a up, but if it does not, wait, else follow the pound down till 1.540.
With the WMA5 down below EMA200 on the daily chart, this signify a down trend for the pound. The pound may not hit 1.538, but technically it is a possibility if there is no reversal.
Yesterday, the equalities market did a good run, the Dow gain more than a hundred points.This morning Asian market continue the run up, so will the pound follow? It does, but will the momentum continue to the European market?
Today at 1630hrs, UK will be releasing news on GDP, Current Account, Mortgage Approvals and CBI Realized Sales. These will be news that will send the pound further down or reverse the trend.
Resistance is at 1.605, clearing that will bring pound higher to 1.62. On the hind side, support is at 1.538 then 1.500.
Trend: Not sure. One safer way to play is to wait for the news and determine what the direction of the pound be. The other way is to watch the CCI. It is now oversold. If it cut the BB, it will show a up, but if it does not, wait, else follow the pound down till 1.540.
Monday, September 28, 2009
28 Sep 2009
GBP/USD Analysis:
Chancellor Darling will speaks today. But whether his words will have any impact for the pound to continue its down trend or reverse, the subject is not clear.
The pound broke daily EMA200. It will continue to journey down. It has already broken support at 1.60 and is now testing 1.58.
Looking at the CCI(34), the pound is looking for a reversal, but this morning a took a nose dive, bringing that reversal looking a bit distance. 1.578 will be a support followed by 1.535.
It is not a moment to reverse, but if so, wait for CCI(34) to clear through BB. Resistance is at 1.600 and beyond that 1.6104.
Trend: It can continue its way down, but it could also reverse. CCI has been over sold but has not showed sign of reversal.
Therefore play at support and resistance line or wait for clearer indication.
Chancellor Darling will speaks today. But whether his words will have any impact for the pound to continue its down trend or reverse, the subject is not clear.
The pound broke daily EMA200. It will continue to journey down. It has already broken support at 1.60 and is now testing 1.58.
Looking at the CCI(34), the pound is looking for a reversal, but this morning a took a nose dive, bringing that reversal looking a bit distance. 1.578 will be a support followed by 1.535.
It is not a moment to reverse, but if so, wait for CCI(34) to clear through BB. Resistance is at 1.600 and beyond that 1.6104.
Trend: It can continue its way down, but it could also reverse. CCI has been over sold but has not showed sign of reversal.
Therefore play at support and resistance line or wait for clearer indication.
Thursday, September 24, 2009
24 Sep 2009
GBP/USD Analysis:
With MPC (Monetary Policy Committee)of UK, all nine policymakers also voted to hold interest rates at 0.5pc and did not think there had been enough major economic developments to warrant any change to the £50m expansion of quantitative easing agreed in August. This means good news which means to stop printing more pound to sustain the economic developments. The pound climbed as a result by failed to break 1.644.
In the evening, the Fed made in its FOMC meeting that rates will remain, stating that the economy is doing well. The Fed repeated that it "continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." This caused a reversal and strenghtened the USD.
This evening at 2200hrs SGT, US Homes Sale and orders for long- lasting goods probably rose in August, extending gains that have signaled the U.S. is emerging from the worst recession since the 1930s.
On the technical anaylsis, the pound has not been able to come out of its 1.64-1.644 resistance barrier. It is now constaint within the daily EMA100 and EMA55, within 1.63 and 1.64.
Will then the evening news or any technical movement break either below 1.627 or break above 1.644?
Trend: A likely scenario will be a range trading in the morning and early after with the band 1.632 and 1.640, with the news from MPC and Fed making no change to their rates. So it will be good to catch a long at 1.632 or a short at 1.64. But once the breakout occur and it is not in favour of your position, its good to close the trade.
Breaking 1.644 will meands pound has the potential to go to 1.65, while breaking below 1.627 will send the pound back to 1.616.
With MPC (Monetary Policy Committee)of UK, all nine policymakers also voted to hold interest rates at 0.5pc and did not think there had been enough major economic developments to warrant any change to the £50m expansion of quantitative easing agreed in August. This means good news which means to stop printing more pound to sustain the economic developments. The pound climbed as a result by failed to break 1.644.
In the evening, the Fed made in its FOMC meeting that rates will remain, stating that the economy is doing well. The Fed repeated that it "continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." This caused a reversal and strenghtened the USD.
This evening at 2200hrs SGT, US Homes Sale and orders for long- lasting goods probably rose in August, extending gains that have signaled the U.S. is emerging from the worst recession since the 1930s.
On the technical anaylsis, the pound has not been able to come out of its 1.64-1.644 resistance barrier. It is now constaint within the daily EMA100 and EMA55, within 1.63 and 1.64.
Will then the evening news or any technical movement break either below 1.627 or break above 1.644?
Trend: A likely scenario will be a range trading in the morning and early after with the band 1.632 and 1.640, with the news from MPC and Fed making no change to their rates. So it will be good to catch a long at 1.632 or a short at 1.64. But once the breakout occur and it is not in favour of your position, its good to close the trade.
Breaking 1.644 will meands pound has the potential to go to 1.65, while breaking below 1.627 will send the pound back to 1.616.
Wednesday, September 23, 2009
23 Sep 2009
GBP/USD Analysis:
Yesterday, the pound broke resistance line at 1.629, then 1.634 even to clear the hourly EMA200 at 1.636. Now it is trying to hit 1.64, which has been a strong support and resistance line.
No news in the morning or the early afternoon, so it will be again all price action. If it can be supported at 1.636 and remain in range to 1.64. Breaking below 1.636, will bring the support to 1.629 again, then 1.6275. Breaking 1.64 will bring it higher to resistance at 1.644, below it can go above 1.65 level.
The news in the afternoon all point to a better than expected forecast. With the Euro making new high, the pound can make new high after the series of news from 1500 to 1700hrs SGT.
Trend: CCI climbing up, showing a continuation for pound to make new high. Before 1500hrs SGT if pound make new high above 1.64, wait and see if the news bring the price higher above 1.644. If that do, the pound will create more room to move upwards, potentially to 1.65. However, if the news failed to maintain the price above 1.64, the pound may move back towards 1.63.
Yesterday, the pound broke resistance line at 1.629, then 1.634 even to clear the hourly EMA200 at 1.636. Now it is trying to hit 1.64, which has been a strong support and resistance line.
No news in the morning or the early afternoon, so it will be again all price action. If it can be supported at 1.636 and remain in range to 1.64. Breaking below 1.636, will bring the support to 1.629 again, then 1.6275. Breaking 1.64 will bring it higher to resistance at 1.644, below it can go above 1.65 level.
The news in the afternoon all point to a better than expected forecast. With the Euro making new high, the pound can make new high after the series of news from 1500 to 1700hrs SGT.
Trend: CCI climbing up, showing a continuation for pound to make new high. Before 1500hrs SGT if pound make new high above 1.64, wait and see if the news bring the price higher above 1.644. If that do, the pound will create more room to move upwards, potentially to 1.65. However, if the news failed to maintain the price above 1.64, the pound may move back towards 1.63.
Tuesday, September 22, 2009
22 Sep 2009
GBP/USD Analysis:
Again today is a day of few major news. Japan is on holiday an Europe and US has no major news to report.
Yesterday, the pound made a down, but was supported at 1.616. In order for pound to continue its way down it has to break 1.61 and better still the daily EMA200 at 1.60.
Without news, the pound will determine the trading range by morning or by afternoon. By morning trading, the pound climbed above 1.622. Should this range continue, the pound will trade within 1.622 and 1.627.
The afternoon session could bring the pound to the next trading range, which can either be 1.616 to 1.621 or 1.629 to 1.634.
If pound break 1.61 it will be a go down and if it break 1.634, it will meet resistance at 1.64, then 1.644.
Trend: Quiet and has to be cautious with trading range yet to be determined.
For conservative trade, do a long at 1.616. Overall trend using the daily CCI showed the pound moving upward, only to take short trade after 1.610.
Again today is a day of few major news. Japan is on holiday an Europe and US has no major news to report.
Yesterday, the pound made a down, but was supported at 1.616. In order for pound to continue its way down it has to break 1.61 and better still the daily EMA200 at 1.60.
Without news, the pound will determine the trading range by morning or by afternoon. By morning trading, the pound climbed above 1.622. Should this range continue, the pound will trade within 1.622 and 1.627.
The afternoon session could bring the pound to the next trading range, which can either be 1.616 to 1.621 or 1.629 to 1.634.
If pound break 1.61 it will be a go down and if it break 1.634, it will meet resistance at 1.64, then 1.644.
Trend: Quiet and has to be cautious with trading range yet to be determined.
For conservative trade, do a long at 1.616. Overall trend using the daily CCI showed the pound moving upward, only to take short trade after 1.610.
Monday, September 21, 2009
21 Sep 2009
GBP/USD Analaysis:
It will be a quiet morning with Japan and most of S.E Asian market on holiday. Euopre will too be trading thinly with no major news for the day.
Two news emerged during the weekend. One for the explaination why the pound fell because of fears over the parlous state of the public finances may have helped trigger a stampede away from the pound, Bank of England analysis suggested. The other a positive news on UK housing from Bloomberg, U.K. home sellers raised asking prices in September as confidence in the property market improved and the supply of homes dwindled, Rightmove Plc said.
As such movement of the pound for today will be again based strongly on technicals, as no major news to trigger it in any possible direction.
With a drop below 1.63, it is suggested that the pound will continue to lost ground and hit support line at 1.616, then 1.608.
A likely movement will be for the pound to hit support at 1.616 then rebound to gain 1.629. A break at 1.629 will bring the pound in the up trend towards 1.64.
Trend: There are no clear indication from CCI, which suggest a possible down movement, pending reversal up.
As such, you can trade long at 1.616, SL at 1.608 and TP at 1.629. If you are more daring, do a short now, TP at around 1.616 and 1.608, SL at 1.629. You can also do a short at 1.629, TP at 1.616, TP at 1.64.
Do take profits whenever possible as I expect the market to range between 1.629 and 1.616.
It will be a quiet morning with Japan and most of S.E Asian market on holiday. Euopre will too be trading thinly with no major news for the day.
Two news emerged during the weekend. One for the explaination why the pound fell because of fears over the parlous state of the public finances may have helped trigger a stampede away from the pound, Bank of England analysis suggested. The other a positive news on UK housing from Bloomberg, U.K. home sellers raised asking prices in September as confidence in the property market improved and the supply of homes dwindled, Rightmove Plc said.
As such movement of the pound for today will be again based strongly on technicals, as no major news to trigger it in any possible direction.
With a drop below 1.63, it is suggested that the pound will continue to lost ground and hit support line at 1.616, then 1.608.
A likely movement will be for the pound to hit support at 1.616 then rebound to gain 1.629. A break at 1.629 will bring the pound in the up trend towards 1.64.
Trend: There are no clear indication from CCI, which suggest a possible down movement, pending reversal up.
As such, you can trade long at 1.616, SL at 1.608 and TP at 1.629. If you are more daring, do a short now, TP at around 1.616 and 1.608, SL at 1.629. You can also do a short at 1.629, TP at 1.616, TP at 1.64.
Do take profits whenever possible as I expect the market to range between 1.629 and 1.616.
Friday, September 18, 2009
18 Sep 2009
GU Analysis:
The dollar continue to decline against the euro, as signs the global economic recovery spurring investors to sell the greenback and buy higher-yielding. The Euro went to as high as 1.47.
The pound however was not moved despite the move in Euro. Instead by this morning trade it has fallen back below 1.64.
Unfortunately, there will be no major UK news that will spur the pound back. The halt will mostly be technical at support at 1.63.
If the WMA5 of the daily chart fall below EMA21, hopefully the decline is stop when WMA5 rebound off EMA100. The price action will then be supported at 1.62. But this is most likely unlikely to happen today.
The immediate support for today is at 1.6305. If pound rebound, resistance is at 1.643, then 1.652.
Trend: Down, with the Euro in a most likely state to consolidate downward, the pound will have to give in.
The dollar continue to decline against the euro, as signs the global economic recovery spurring investors to sell the greenback and buy higher-yielding. The Euro went to as high as 1.47.
The pound however was not moved despite the move in Euro. Instead by this morning trade it has fallen back below 1.64.
Unfortunately, there will be no major UK news that will spur the pound back. The halt will mostly be technical at support at 1.63.
If the WMA5 of the daily chart fall below EMA21, hopefully the decline is stop when WMA5 rebound off EMA100. The price action will then be supported at 1.62. But this is most likely unlikely to happen today.
The immediate support for today is at 1.6305. If pound rebound, resistance is at 1.643, then 1.652.
Trend: Down, with the Euro in a most likely state to consolidate downward, the pound will have to give in.
Friday, September 11, 2009
11 Sep 2009
GBP/USD Analysis:
A major break above 1.66. Pound hit as high as 1.668, only to stay around 1.664. Accordingly, 1.666 will be a strong resistance, meaning that the price action yesterday was just a hit and return. 1.6660 served as a resistance line many times in the past. It was created on October 30th 2008 when is was a swing peak. It was tested over and over in recent months. For one week in August, GBP/USD traded above this line. But after it fell back down, 1.6660 preserved its status.
Yesteday was peppered with good news from Fed, stating that the U.S. economic recovery has started and the Fed could stop short of buying the full amount of mortgage-related securities it said it would buy to boost the economy. Unemployment claim continue to post lower.
Today, at 1630hrs SGT UK will be reporting PPI. The producer price index fell by 1.4%, much more than expected. The fear that Britain is also diving into deflation is strong. This month’s PPI is predicted to rise by 0.6%
If pound can break and stay above 1.666, it will swing higher towards 1.67/ 1.672, then 1.7 is within reach.
Should by this morning trading session, pound failed to stay above 1.6660 and 1.6625, the swing may be downward. Traget is at 1.657.
CCI look up and has yet overbought, therefore indicating momentum to go higher.
Trend: Expecting a price trading range within 1.667 and 1.663. A break will determine the next level at either 1.67 ot 1.660. A strong break from 1.67 and 1.66 will set the direction for today.
A major break above 1.66. Pound hit as high as 1.668, only to stay around 1.664. Accordingly, 1.666 will be a strong resistance, meaning that the price action yesterday was just a hit and return. 1.6660 served as a resistance line many times in the past. It was created on October 30th 2008 when is was a swing peak. It was tested over and over in recent months. For one week in August, GBP/USD traded above this line. But after it fell back down, 1.6660 preserved its status.
Yesteday was peppered with good news from Fed, stating that the U.S. economic recovery has started and the Fed could stop short of buying the full amount of mortgage-related securities it said it would buy to boost the economy. Unemployment claim continue to post lower.
Today, at 1630hrs SGT UK will be reporting PPI. The producer price index fell by 1.4%, much more than expected. The fear that Britain is also diving into deflation is strong. This month’s PPI is predicted to rise by 0.6%
If pound can break and stay above 1.666, it will swing higher towards 1.67/ 1.672, then 1.7 is within reach.
Should by this morning trading session, pound failed to stay above 1.6660 and 1.6625, the swing may be downward. Traget is at 1.657.
CCI look up and has yet overbought, therefore indicating momentum to go higher.
Trend: Expecting a price trading range within 1.667 and 1.663. A break will determine the next level at either 1.67 ot 1.660. A strong break from 1.67 and 1.66 will set the direction for today.
Thursday, September 10, 2009
10 Sep 2009
GBP/USD Analysis:
The equity market and the commodity market is up. Dow was up 50 points and that was in line with what the Fed said about the economy. The return to equity always point to a bugger risk appetite. With the price of crude oil hitting $71 dollar again, showed a weaken dollar.
Both Eur and pound managed to hit high and close high. Pound made another 1.659, but failed to break 1.66.
Today a whole range of news with 1600hrs SGT UK Halifax HPI, 1900hrs UK Official Bank Rate and 2030hrs US Unemployment Claims.
Bank of England policy makers will probably keep pursuing their 175 billion-pound ($290 billion) emergency stimulus program today as the British economy shows signs of lagging behind the global recovery. The rate will also be kept at low.
US will continue to show slow growth with not much a significant change in unemployment claims.
So what will the effect on the pound? If the news manage to break the pound up 1.66, the target will be 1.67/1.672. If however, it sank the pound lower, support can be found at 1.64.
It will be a range trading before the news when all will be on the side line. Price range will be from 1.650 and 1.657.
Trend: depends on news. But looking at the CCI, it is on the up.
Support is at 1.646, then 1.641, breaking it will send it lower to 1.6335.
On the up side, breaking resistance at 1.66, will give room towards 1.67/1.672.
The equity market and the commodity market is up. Dow was up 50 points and that was in line with what the Fed said about the economy. The return to equity always point to a bugger risk appetite. With the price of crude oil hitting $71 dollar again, showed a weaken dollar.
Both Eur and pound managed to hit high and close high. Pound made another 1.659, but failed to break 1.66.
Today a whole range of news with 1600hrs SGT UK Halifax HPI, 1900hrs UK Official Bank Rate and 2030hrs US Unemployment Claims.
Bank of England policy makers will probably keep pursuing their 175 billion-pound ($290 billion) emergency stimulus program today as the British economy shows signs of lagging behind the global recovery. The rate will also be kept at low.
US will continue to show slow growth with not much a significant change in unemployment claims.
So what will the effect on the pound? If the news manage to break the pound up 1.66, the target will be 1.67/1.672. If however, it sank the pound lower, support can be found at 1.64.
It will be a range trading before the news when all will be on the side line. Price range will be from 1.650 and 1.657.
Trend: depends on news. But looking at the CCI, it is on the up.
Support is at 1.646, then 1.641, breaking it will send it lower to 1.6335.
On the up side, breaking resistance at 1.66, will give room towards 1.67/1.672.
Wednesday, September 09, 2009
9 Sep 2009
GU Analysis:
Stock prices rallied this week on further expectations for economic recovery, more merger news and much higher commodity and energy prices.
Both the pound and the euro managed to break high yestarday. Euro made new high, clearing 1.445. While the pound cleared a major resistance at 1.64 and hit almost 1.659 yesterday.
Today, there will be no major news that will disrupt the movement. At 1630hrs SGT, we have UK trade Balanced. Britain traditionally has a deficit in its trade balance. Last month, it posted a slightly bigger than expected deficit – 6.5 billion. It’s expected to return to the previous figure of 6.3 billion this time. No major US news, except FOMC minutes.
If firmly supported at 1.645, pound has only 1.660 as resistance to clear before it gain higher. After a big up yesterday, the expectation is for the pound to retrace. It has retrace to its first support at 1.6488 and has rebound. Use EMA21 on the hour chart as a growing support line. If pound can maintain support at EMA21, it will attempt 1.66 again.
On the down side, retracement can go as low as 1.638 (EMA200 on the hour chart). If pound break below EMA200, prepare to relinguish long for today. You can hold, but truely if pound break below 1.625, the trend will reverse down towards 1.602.
Trend: Up, but expect retracement. You may try to catch long whenever it rebound off EMA21, EMA55 and EMA100 on a hour chart. Use 1.6530, 1.6493, 1.6464 and 1.6435 as take profit line. Be patient. Plan to stop loss below 1.6320.
Stock prices rallied this week on further expectations for economic recovery, more merger news and much higher commodity and energy prices.
Both the pound and the euro managed to break high yestarday. Euro made new high, clearing 1.445. While the pound cleared a major resistance at 1.64 and hit almost 1.659 yesterday.
Today, there will be no major news that will disrupt the movement. At 1630hrs SGT, we have UK trade Balanced. Britain traditionally has a deficit in its trade balance. Last month, it posted a slightly bigger than expected deficit – 6.5 billion. It’s expected to return to the previous figure of 6.3 billion this time. No major US news, except FOMC minutes.
If firmly supported at 1.645, pound has only 1.660 as resistance to clear before it gain higher. After a big up yesterday, the expectation is for the pound to retrace. It has retrace to its first support at 1.6488 and has rebound. Use EMA21 on the hour chart as a growing support line. If pound can maintain support at EMA21, it will attempt 1.66 again.
On the down side, retracement can go as low as 1.638 (EMA200 on the hour chart). If pound break below EMA200, prepare to relinguish long for today. You can hold, but truely if pound break below 1.625, the trend will reverse down towards 1.602.
Trend: Up, but expect retracement. You may try to catch long whenever it rebound off EMA21, EMA55 and EMA100 on a hour chart. Use 1.6530, 1.6493, 1.6464 and 1.6435 as take profit line. Be patient. Plan to stop loss below 1.6320.
7 Sep 2009
GU Analysis:
It will be quiet tonight as the market is closed for US and Canada. There will no news in the afternoon, therefore it will be all price action.
After the G20 meeting, U.K. factories’ output will decline at the slowest pace in more than a year in the next three months as the economy recovers from recession. Britain is showing signs of emerging from the worst recession in a generation after the Bank of England last month voted to buy an additional 75 billion pounds ($123 billion) of bonds with newly created money. Such news gave a boast to the pound.
For and unless the price holds above 1.64, the pound will reach higher, given the "good news". If it break 1.642, the resistance is at 1.646 then 1.655.
If WMA5 fall below the daily EMA55, pound will hit back to 1.626, then 1.620.
Trend: Up. Wait for confrimation to break 1.642. else, try to catch a long at 1.637/1.637, but let go when pound fell below 1.622.
It will be quiet tonight as the market is closed for US and Canada. There will no news in the afternoon, therefore it will be all price action.
After the G20 meeting, U.K. factories’ output will decline at the slowest pace in more than a year in the next three months as the economy recovers from recession. Britain is showing signs of emerging from the worst recession in a generation after the Bank of England last month voted to buy an additional 75 billion pounds ($123 billion) of bonds with newly created money. Such news gave a boast to the pound.
For and unless the price holds above 1.64, the pound will reach higher, given the "good news". If it break 1.642, the resistance is at 1.646 then 1.655.
If WMA5 fall below the daily EMA55, pound will hit back to 1.626, then 1.620.
Trend: Up. Wait for confrimation to break 1.642. else, try to catch a long at 1.637/1.637, but let go when pound fell below 1.622.
Friday, September 04, 2009
4 Sep 2009
GBP/USD Analysis:
UK Services PMI continue to hit above 50 at 54.1, showing continuous confidence in recovery. Above 50.0 indicates industry expansion, below indicates contraction.
In the US, unemplyment claims was lower and so was there improvement in the Non-Manufacturing PMI at 48.4
US equity stopped the down slide and make a +ve return. This morning Asian market at noon time mostly registered in positive territory.
At 1450hrs SGT, ECB President Trichet Speaks and will mention on exit plan for the economic recovery stimulus plan that was implemented.
In the evening, 2030hrs SGT, US Unemployment Rate and Non-farm payroll. Expectation is a drop in numbers pointing to recovery.
As at yesterday, the price action swing the WMA5 above daily EMA100, stoppong the slide towards EMA200 at 1.602. The pound rebound to above 1.63 and now hovers around that.
From the technical point, it has one hurdle that is at 1.645 to clear before any sign of a up trend. WMA5 still hover between 1.645 and 1.620
Trend: Price will continue to range between 1.624 and 1.642. A break in this price will give the next support at 1.612, then 1.602. Resistance at 1.645, then 1.652
UK Services PMI continue to hit above 50 at 54.1, showing continuous confidence in recovery. Above 50.0 indicates industry expansion, below indicates contraction.
In the US, unemplyment claims was lower and so was there improvement in the Non-Manufacturing PMI at 48.4
US equity stopped the down slide and make a +ve return. This morning Asian market at noon time mostly registered in positive territory.
At 1450hrs SGT, ECB President Trichet Speaks and will mention on exit plan for the economic recovery stimulus plan that was implemented.
In the evening, 2030hrs SGT, US Unemployment Rate and Non-farm payroll. Expectation is a drop in numbers pointing to recovery.
As at yesterday, the price action swing the WMA5 above daily EMA100, stoppong the slide towards EMA200 at 1.602. The pound rebound to above 1.63 and now hovers around that.
From the technical point, it has one hurdle that is at 1.645 to clear before any sign of a up trend. WMA5 still hover between 1.645 and 1.620
Trend: Price will continue to range between 1.624 and 1.642. A break in this price will give the next support at 1.612, then 1.602. Resistance at 1.645, then 1.652
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