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.
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