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