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.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment