GBP/USD Analysis:
The pound hit the resistance of 1.666 last week, hitting 1.69, before the UK announcement of GDP sent the pound back to 1.63 region.
Over the last 2 days the pound retrace and now is back in the 1.635/1.640 region partly due to Tuesday CBI Realized Sales which saw the fastest growth since lst year, beating expectation.
Yesterday, Adam Posen is a member of the MPC, responsible for rate decisions. He’s rather dovish, urging the expansion of the QE program, if thus doing so will weaken the pound.
Today at the US, we have news from Core Durable Goods Orders at 2030hrs and New Home Sales at 2200hrs. The general expectaion is good, expecting a better report for a growing economy.
Looking at the technical, showed the EMAs at the 1 hour chart sitting on the hinge. A big squeeze was created at the EMA200 at 1.634 and 1.636 region, indicating a major break up or down.
The daily chart show the pound supported at 1.6277 and resisted at 1.644. The next suport is at 1.613/12 region then 1.6024. Of course, breaking 1.666 will bring the pound higher, which may not likely be seen this week.
Trade Plan suggestion: CCI indicate short. Added to the absence of UK news today plus a better than expected US report, will suggest the pound to further retrace to support line at 1.612, then 1.6024.
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nalysis:
The pound hit
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Wednesday, October 28, 2009
Wednesday, October 21, 2009
21 Oct 2009
GBP/USD Analysis:
Crude has been climbing steadily to a near $79. That means a weaker dollar and that could means a greater demand for crude as the world economy improves. $80 look like a phychological resistance.
The Dow took a turn yesterday, registering a dip. Added, most of the US news on housing and core PPI was reported worse than expected.
The pound hit another resistance at 1.647 and made new high at 1.649, but now has retraced to 1.636/38.
The dollars is looking for some consolidation from the way Dow (equity market) and the way crude price goes. In fact tonight US crude oil inventories at 2230hrs SGT is something to note and may force the price to fall thus suggest the returning strength of the dollars.
At the technicals, the EMA21 has not clear EMA55 and EMA100. Obviously pound hit resistance at 1.649 and retrace. Afternoon, at 1600hrs, UK annoucing MPC minutes plus 1800 UK CBI Industrial Order Expectations. This may force the pound to retrace to support at 1.622, then 1.612. CCI is now above 100, meaning that though it can climb higher but is in for some consolidation
If pound managed to clear 1.65, then next resistance is at 1.666.
Trade Plan Suggestion: Wait for consolidation to finish. It may rebound at 1.622, but it may goes further down to 1.612. If it break 1.65/ 52, go for long and TP at 1.660/65.
Crude has been climbing steadily to a near $79. That means a weaker dollar and that could means a greater demand for crude as the world economy improves. $80 look like a phychological resistance.
The Dow took a turn yesterday, registering a dip. Added, most of the US news on housing and core PPI was reported worse than expected.
The pound hit another resistance at 1.647 and made new high at 1.649, but now has retraced to 1.636/38.
The dollars is looking for some consolidation from the way Dow (equity market) and the way crude price goes. In fact tonight US crude oil inventories at 2230hrs SGT is something to note and may force the price to fall thus suggest the returning strength of the dollars.
At the technicals, the EMA21 has not clear EMA55 and EMA100. Obviously pound hit resistance at 1.649 and retrace. Afternoon, at 1600hrs, UK annoucing MPC minutes plus 1800 UK CBI Industrial Order Expectations. This may force the pound to retrace to support at 1.622, then 1.612. CCI is now above 100, meaning that though it can climb higher but is in for some consolidation
If pound managed to clear 1.65, then next resistance is at 1.666.
Trade Plan Suggestion: Wait for consolidation to finish. It may rebound at 1.622, but it may goes further down to 1.612. If it break 1.65/ 52, go for long and TP at 1.660/65.
Tuesday, October 20, 2009
20 Oct 2009
GBP/USD Analysis:
The pound has indeed swing back and strenghten against the dollar yesterday. It hit its resistance at 1.64/ 42 yesterday, making a clear for WMA5 to be above EMA100 and EMA55 on the daily chart.
Wht is left to watch is for the EMA21 to clear EMA100/EMA55, then that will clearly bring the resistance at 1.64/42 region to become the support.
The news this week and today will set the pace for the pound.Public Sector Net Borrowing, Lending by the government doubled last month, indicating that more money is going to be spent. From 16.2 billion, the expectations for this month are for a small drop to 15.2 billion. This news will be published today at 1630hrs SGT.
As of now resistance is still at 1.64/42 region. The next is at 1.647. Support is at 1.622, then 1.614.
Trade Plan sugesstion: Wait for the news at 1630hrs, if it is a positive news, do a long , but TP before US opening or TP at around 1.642 to 1.647 region. Alternative, choose to long at 1.622 region.
The pound has indeed swing back and strenghten against the dollar yesterday. It hit its resistance at 1.64/ 42 yesterday, making a clear for WMA5 to be above EMA100 and EMA55 on the daily chart.
Wht is left to watch is for the EMA21 to clear EMA100/EMA55, then that will clearly bring the resistance at 1.64/42 region to become the support.
The news this week and today will set the pace for the pound.Public Sector Net Borrowing, Lending by the government doubled last month, indicating that more money is going to be spent. From 16.2 billion, the expectations for this month are for a small drop to 15.2 billion. This news will be published today at 1630hrs SGT.
As of now resistance is still at 1.64/42 region. The next is at 1.647. Support is at 1.622, then 1.614.
Trade Plan sugesstion: Wait for the news at 1630hrs, if it is a positive news, do a long , but TP before US opening or TP at around 1.642 to 1.647 region. Alternative, choose to long at 1.622 region.
Monday, October 19, 2009
19 Oct 2009
GBP/USD Analysis:
Now WMA5 is above EMA100 on the daily chart. This bring the support to 1.622/ 1.620 region.
Today there is a absent of news but watch out for fed chairman speech at 2300hrs SGT.
After 15 Oct climb, the pound will need a breather, which took place on Friday 16 Oct and may continue to do so this week. Taking reference from the Euro, consolidation has started.
CCI is in a state of consolidation, meaning that there is no clear incidation of pound direction.
Ressistance is at 1.646 then, 1.659.
Trading plan susggestion: It will be safer to watc where pound consolidate to and probably at the support region of 1.62. At such poistion a long can be triggered TP at 1.639. For more conservative, wait for clearer signal from CCI.
Now WMA5 is above EMA100 on the daily chart. This bring the support to 1.622/ 1.620 region.
Today there is a absent of news but watch out for fed chairman speech at 2300hrs SGT.
After 15 Oct climb, the pound will need a breather, which took place on Friday 16 Oct and may continue to do so this week. Taking reference from the Euro, consolidation has started.
CCI is in a state of consolidation, meaning that there is no clear incidation of pound direction.
Ressistance is at 1.646 then, 1.659.
Trading plan susggestion: It will be safer to watc where pound consolidate to and probably at the support region of 1.62. At such poistion a long can be triggered TP at 1.639. For more conservative, wait for clearer signal from CCI.
Friday, October 16, 2009
16 Oct 2009
GBP/USD Analysis:
The pound did an extraodinary breakout gaining against the Euro and the dollars, achieving more than 250pips.
There are no major news, so why? Speculation around the Bank of England (BOE) decides to ease up on its quantitative easing. When a central bank stops its quantitative easing policies, it typically increases the value of the currency.
In US, unemployment rate fell, giving a boost to the DoW and strength of a economic recovery as minuted by FOMC on Tuesday.
Has the pound break high enough to gain momentum to reach hihger highs? Technically, not yet. WMA5 hit above EMA200, but still have EMA55 and EMA100 to clear on its daily chart. The shot up also meant some consolidation may occur.
Resistance is at 1.639/40 region before consolidation, the next is at 1.645
Support on the other hand is at EMA55/EMA100 region at 1.62, then 1.612.
Trade Plan suggestion: Take some profit for those who have long at 1.639/40 region.
Not a time to short. If consoldiation does take place, place a long at 1.62 or 1.612 region.
The pound did an extraodinary breakout gaining against the Euro and the dollars, achieving more than 250pips.
There are no major news, so why? Speculation around the Bank of England (BOE) decides to ease up on its quantitative easing. When a central bank stops its quantitative easing policies, it typically increases the value of the currency.
In US, unemployment rate fell, giving a boost to the DoW and strength of a economic recovery as minuted by FOMC on Tuesday.
Has the pound break high enough to gain momentum to reach hihger highs? Technically, not yet. WMA5 hit above EMA200, but still have EMA55 and EMA100 to clear on its daily chart. The shot up also meant some consolidation may occur.
Resistance is at 1.639/40 region before consolidation, the next is at 1.645
Support on the other hand is at EMA55/EMA100 region at 1.62, then 1.612.
Trade Plan suggestion: Take some profit for those who have long at 1.639/40 region.
Not a time to short. If consoldiation does take place, place a long at 1.62 or 1.612 region.
Thursday, October 15, 2009
15 Oct 2009
GBP/USD Analysis:
Euro hit high, Dow hit 10000, crude surpass $75.. All these continues to point to a weakness in the dollar. The dollar index has fallen bleow its key support at 76.
With better than expected news from UK yesterday, it spike the pound up another 200 pips.
With no UK news in the afternoon, any further spike will depend on this evening US unemplyment claims at 2030hrs SGT.
Technically, the pound cleared the first resistance at 1.602, then 1.612. WMA5 has not clear EMA200 and neither has it punch through EMA100 and EMA55 before a considerations for a breakout up.
Pound may return to its supprt at 1.579.
Trade Plan suggestion: Direction is very uncertain. Thus trade taking small profit. Either long or short may be right. Beware of resistance and support.
Euro hit high, Dow hit 10000, crude surpass $75.. All these continues to point to a weakness in the dollar. The dollar index has fallen bleow its key support at 76.
With better than expected news from UK yesterday, it spike the pound up another 200 pips.
With no UK news in the afternoon, any further spike will depend on this evening US unemplyment claims at 2030hrs SGT.
Technically, the pound cleared the first resistance at 1.602, then 1.612. WMA5 has not clear EMA200 and neither has it punch through EMA100 and EMA55 before a considerations for a breakout up.
Pound may return to its supprt at 1.579.
Trade Plan suggestion: Direction is very uncertain. Thus trade taking small profit. Either long or short may be right. Beware of resistance and support.
Wednesday, October 14, 2009
14 Oct 2009
GBP/USD Analysis:
A mix of good and bad news was reported yesterday. CPI which indicate the case for inflation showed worse than expected resulted, while RPI (differs from CPI in that it only measures goods and services bought for the purpose of consumption by the vast majority of households, and it includes housing costs which are excluded from CPI) are better off.
The pound rebound off 1.57 and did a return to 1.592, a 200 pips rebound.
The Euro also made new high at 1.4855, indicating a path of confidence in the Germany and France. That may may triggered the pound which has been weak for the last week.
Added, crude has been above $74 and gold above $1069, given the weak dollars.
The pound is still not able to clear its EMA200 at 1.598 region. Thus given any consolidation of the dollars to strengthen, by looking at how crude and gold has climbed, the weakest currency which is the pound may weaken.
Its support lies at the cruial 1.570, then 1.555.
Trade plan suggestion: CCI is squeezing. For those who has short pound hold to see if it does come down today, else let go when it hit above 1.597. You may enter a long either above 1.602 to TP at 1.610/12 or wait to enter long at 1.57.
A mix of good and bad news was reported yesterday. CPI which indicate the case for inflation showed worse than expected resulted, while RPI (differs from CPI in that it only measures goods and services bought for the purpose of consumption by the vast majority of households, and it includes housing costs which are excluded from CPI) are better off.
The pound rebound off 1.57 and did a return to 1.592, a 200 pips rebound.
The Euro also made new high at 1.4855, indicating a path of confidence in the Germany and France. That may may triggered the pound which has been weak for the last week.
Added, crude has been above $74 and gold above $1069, given the weak dollars.
The pound is still not able to clear its EMA200 at 1.598 region. Thus given any consolidation of the dollars to strengthen, by looking at how crude and gold has climbed, the weakest currency which is the pound may weaken.
Its support lies at the cruial 1.570, then 1.555.
Trade plan suggestion: CCI is squeezing. For those who has short pound hold to see if it does come down today, else let go when it hit above 1.597. You may enter a long either above 1.602 to TP at 1.610/12 or wait to enter long at 1.57.
Tuesday, October 13, 2009
13 Oct 2009
GBP/USD Analysis:
According to Bloomberg, UK housing market strengthens on home shortage as reported this morning. Likewise, UK Same-store retail up 2.8%.
This afternoon, more UK news release at 1630hrs SGT on CPI and RPI.
The pound was not able to keep above its EMA200 for the last few days. It nows hover below EMA200 at 1.58 and 1.57. It has not shown break down, but given the goods news this morning, it may contain the drop. All ears will be on news this afternoon. CCI has indicate a downward movement, thus adding to any worse than expected news this afternoon, the pound may break below 1.57 and sail towards 1.554.
Of course, given the better than expected news, it may help the pound to recover ground. But of course resistance is at 1.598 and 1.612.
Trade Plan suggestion: Do short, take profit at 1.570. If the pound break up, let go of short poistion at 1.612
According to Bloomberg, UK housing market strengthens on home shortage as reported this morning. Likewise, UK Same-store retail up 2.8%.
This afternoon, more UK news release at 1630hrs SGT on CPI and RPI.
The pound was not able to keep above its EMA200 for the last few days. It nows hover below EMA200 at 1.58 and 1.57. It has not shown break down, but given the goods news this morning, it may contain the drop. All ears will be on news this afternoon. CCI has indicate a downward movement, thus adding to any worse than expected news this afternoon, the pound may break below 1.57 and sail towards 1.554.
Of course, given the better than expected news, it may help the pound to recover ground. But of course resistance is at 1.598 and 1.612.
Trade Plan suggestion: Do short, take profit at 1.570. If the pound break up, let go of short poistion at 1.612
Monday, October 12, 2009
12 Oct 2009
GBP/USD Analysis:
Technically, the pound has yet to clear off its resistance at daily EMA200 at 1.600. Last week it attempt but failed and over last Friday, it fall back to 1.58.
today is a day without major news, with both Japan and US banks on holiday.
Looking at the technical side, pound will maintain within trading range of 1.598 and 1.579.
With expection of breakout, if it does above 1.60, it will still face resistance at 1.612. On the down side, support at 1.579 is near, with the next level at 1.59.
Trading plan suggestion: trade long at support or trade short at resistance. Take small profit. CCI has indicated a zone of uncertainty, meaning that it has just reverse down, but it is not a time to enter short.
Technically, the pound has yet to clear off its resistance at daily EMA200 at 1.600. Last week it attempt but failed and over last Friday, it fall back to 1.58.
today is a day without major news, with both Japan and US banks on holiday.
Looking at the technical side, pound will maintain within trading range of 1.598 and 1.579.
With expection of breakout, if it does above 1.60, it will still face resistance at 1.612. On the down side, support at 1.579 is near, with the next level at 1.59.
Trading plan suggestion: trade long at support or trade short at resistance. Take small profit. CCI has indicated a zone of uncertainty, meaning that it has just reverse down, but it is not a time to enter short.
Thursday, October 08, 2009
8 Oct 2009
GBP/USD Analysis:
Movement was slow, and the pound still managed to maintain and keep within the range of 1.58 and 1.60.
Today, UK CB Leading Index report at 1700hrs SGT. This compound index of 7 economic indicators is based on past data. Despite this fact, the timing, just two hours before the rate decision, can fuel nervousness. The leading index rose in the past four months, with a 0.7% rise last time.
MPC will most likely to maintain interest rates constant. The tentative time for this report is at 1900hrs SGT.
On the technical side, pound has been squeezing since the last week of September. Resistance is at 1.62 and support is at 1.577. The pound continues to form a triangle, meaning trading range became smaller. Yesterday was only within 200 pips.
The news will have impact on the new direction of the pound, that is above 1.60 towards 1.62, then 1.64. Or it may swing down towards 1.57 and head lower towards 1.50.
Trading Suggestion: Do a wait and see before the news decide the direction. The best way to trade is to trade breakout, above 1.62 and below 1.57.
Movement was slow, and the pound still managed to maintain and keep within the range of 1.58 and 1.60.
Today, UK CB Leading Index report at 1700hrs SGT. This compound index of 7 economic indicators is based on past data. Despite this fact, the timing, just two hours before the rate decision, can fuel nervousness. The leading index rose in the past four months, with a 0.7% rise last time.
MPC will most likely to maintain interest rates constant. The tentative time for this report is at 1900hrs SGT.
On the technical side, pound has been squeezing since the last week of September. Resistance is at 1.62 and support is at 1.577. The pound continues to form a triangle, meaning trading range became smaller. Yesterday was only within 200 pips.
The news will have impact on the new direction of the pound, that is above 1.60 towards 1.62, then 1.64. Or it may swing down towards 1.57 and head lower towards 1.50.
Trading Suggestion: Do a wait and see before the news decide the direction. The best way to trade is to trade breakout, above 1.62 and below 1.57.
Wednesday, October 07, 2009
7 Oct 2009
GBP/USD Analysis:
The pound was doing well, hitting high at 1.604 right after hopes for a recovery in the housing market were fuelled today as Halifax, the building society, recorded a 1.6 per cent increase in house prices for September.
But U.K. manufacturing production unexpectedly slumped in August to the lowest level since 1992, a sign the economy is struggling to shake off the recession. This entirely pull the pound back to 1.588.
Today will be a quiet day. Another day of range trading from 1.602 to 1.582. Resistance is still at 1.6025, then 1.6075, then 1.62. If wee can clear 1.6075, there will be a indication for pound to untangle this dead lock of moving side way.
Support is at 1.570, then 1.554. Breaking below 1.570 is a serious indicator for another round of downward movement.
Trading Suggestion: CCI is still "long" but a prolong side movement has already show weakness of reversal. Coupled with the lack of news today, I am expecting a breakout. Therefore if there is a need to trade, trade with taking immediate small profits. Either long of short will be good, but keep within the range of 1.6025 and 1.580
The pound was doing well, hitting high at 1.604 right after hopes for a recovery in the housing market were fuelled today as Halifax, the building society, recorded a 1.6 per cent increase in house prices for September.
But U.K. manufacturing production unexpectedly slumped in August to the lowest level since 1992, a sign the economy is struggling to shake off the recession. This entirely pull the pound back to 1.588.
Today will be a quiet day. Another day of range trading from 1.602 to 1.582. Resistance is still at 1.6025, then 1.6075, then 1.62. If wee can clear 1.6075, there will be a indication for pound to untangle this dead lock of moving side way.
Support is at 1.570, then 1.554. Breaking below 1.570 is a serious indicator for another round of downward movement.
Trading Suggestion: CCI is still "long" but a prolong side movement has already show weakness of reversal. Coupled with the lack of news today, I am expecting a breakout. Therefore if there is a need to trade, trade with taking immediate small profits. Either long of short will be good, but keep within the range of 1.6025 and 1.580
Tuesday, October 06, 2009
6 Oct 2009
GBP/USD Analysis:
The pound continue to struggle free EMA200 resistance for the week. It has been price range within 1.602 and 1.587, with occassion breaking high to 1.613 and low to 1.580.
Yesterday Britain's services sector grew at its strongest pace in two years in September. For the third quarter, the index averaged 54.2, the best quarterly performance since the third quarter of 2007. It caused the pound to spike high.
During the US opening, the pound fell with dues because of US ISM Non-Manufacturing PMI, hiiting above 50 at 50.9. The Dow open this week with a 100 points.
With the global economy recovering, the demand and the strength of the greenback is back.
There is no news from the US, so it all say by the reports from the UK. At 1600hrs SGT UK Halifax HPI , then at 1630hrs SGT Manufacturing Production. The Halifax HPI has risen in the last two months, and is expected to do so also this time by 0.6%. The Manufacturing Production, published at the same time, is expected to follow with a rise of 0.1%, also for the third consecutive month.
If the good news do follow, the pound still have to clear its resistance at the daily EMA200 at 1.6025. If that can be breach, the target is 1.6075, then 1.620.
Support on the other hand is found at 1.579. It will be drastic to break this support, which will means the pound will weaken towards a new low of 1.549, dampening any prospect of the pound in the long position.
Trade Suggestion: Watch the news and watch the CCI, which happens to be still indicating going long. A good catch is for the pound to clear 1.602 and do a long with small gains towards 1.62. Abandon long position if the results of the news is negative than expected. Watch and see if the support at 1.579 is broken. My suggestion is not to go short yet until the CCI indicate so.
The pound continue to struggle free EMA200 resistance for the week. It has been price range within 1.602 and 1.587, with occassion breaking high to 1.613 and low to 1.580.
Yesterday Britain's services sector grew at its strongest pace in two years in September. For the third quarter, the index averaged 54.2, the best quarterly performance since the third quarter of 2007. It caused the pound to spike high.
During the US opening, the pound fell with dues because of US ISM Non-Manufacturing PMI, hiiting above 50 at 50.9. The Dow open this week with a 100 points.
With the global economy recovering, the demand and the strength of the greenback is back.
There is no news from the US, so it all say by the reports from the UK. At 1600hrs SGT UK Halifax HPI , then at 1630hrs SGT Manufacturing Production. The Halifax HPI has risen in the last two months, and is expected to do so also this time by 0.6%. The Manufacturing Production, published at the same time, is expected to follow with a rise of 0.1%, also for the third consecutive month.
If the good news do follow, the pound still have to clear its resistance at the daily EMA200 at 1.6025. If that can be breach, the target is 1.6075, then 1.620.
Support on the other hand is found at 1.579. It will be drastic to break this support, which will means the pound will weaken towards a new low of 1.549, dampening any prospect of the pound in the long position.
Trade Suggestion: Watch the news and watch the CCI, which happens to be still indicating going long. A good catch is for the pound to clear 1.602 and do a long with small gains towards 1.62. Abandon long position if the results of the news is negative than expected. Watch and see if the support at 1.579 is broken. My suggestion is not to go short yet until the CCI indicate so.
Friday, October 02, 2009
2 Oct 2009
GBP/USD Analysis:
The dollar rose against the euro and a basket of currencies Thursday as disappointing jobs and manufacturing data fueled new worries.
Wall Street shares tumbled after data showed more people than expected filed initial claims for jobless benefits last week, while the manufacturing sector grew less than expected in September.
The pound also suffered a down heading low towards 1.588.
Today at 1400hrs SGT, expect UK Nationwide HPI and at 1630hrs SGT UK Construction PMI.
The pound has been hovering below but around the EMA200 on the daily chart. Whether it will hit high and stay above EMA200 or continue with a down trend towards 1.57.
CCI overall still indicate a up trend, but on the short term, it is good to watch today news for an indication of trend.
If after 1630hrs news, pound hit low below 1.58, the trend will continue for it to hit 1.57, then 1.55. Else resistance is at 1.60, then 1.62.
Trade Suggestion: Trade long in shorter time frame now till the start of news. Once after the news at 1630hrs, trade accordingly to the direction that follow.
The dollar rose against the euro and a basket of currencies Thursday as disappointing jobs and manufacturing data fueled new worries.
Wall Street shares tumbled after data showed more people than expected filed initial claims for jobless benefits last week, while the manufacturing sector grew less than expected in September.
The pound also suffered a down heading low towards 1.588.
Today at 1400hrs SGT, expect UK Nationwide HPI and at 1630hrs SGT UK Construction PMI.
The pound has been hovering below but around the EMA200 on the daily chart. Whether it will hit high and stay above EMA200 or continue with a down trend towards 1.57.
CCI overall still indicate a up trend, but on the short term, it is good to watch today news for an indication of trend.
If after 1630hrs news, pound hit low below 1.58, the trend will continue for it to hit 1.57, then 1.55. Else resistance is at 1.60, then 1.62.
Trade Suggestion: Trade long in shorter time frame now till the start of news. Once after the news at 1630hrs, trade accordingly to the direction that follow.
Thursday, October 01, 2009
1 Oct 2009
GBP/USD Analysis:
It was all up in the afternoon until the news of US Non Farm Employment Change gave up all the gains. On the stronger side, US reported better than expected GDP.
Three major news will be announced today. One at 1630hrs SGT on UK Manufacturing PMI, at 2030hrs GST US Unemployment Claims and at 2200hrs US Pending Home Sales. Accordingly, both UK and US will be expecting better than expected reported on the economy.
On the techically side, expect a down side as WMA5 still hovers below EMA200 on the daily chart. CCI points to a up trend. If price action can be supported at 1.592 after the UK news, it may rebound back to 1.60. The next support is at 1.579. A failure to rebound may bring the pound further down to 1.50 and you can also expect the CCI to indicate and reverse the trend.
On the up side, resistance is at 1.604, then 1.62, which the pound failed to breakthrough yesterday.
Trend: Up, but it will be safe to enter long at the support. Let go of position if the price action goes below 1.570.
It was all up in the afternoon until the news of US Non Farm Employment Change gave up all the gains. On the stronger side, US reported better than expected GDP.
Three major news will be announced today. One at 1630hrs SGT on UK Manufacturing PMI, at 2030hrs GST US Unemployment Claims and at 2200hrs US Pending Home Sales. Accordingly, both UK and US will be expecting better than expected reported on the economy.
On the techically side, expect a down side as WMA5 still hovers below EMA200 on the daily chart. CCI points to a up trend. If price action can be supported at 1.592 after the UK news, it may rebound back to 1.60. The next support is at 1.579. A failure to rebound may bring the pound further down to 1.50 and you can also expect the CCI to indicate and reverse the trend.
On the up side, resistance is at 1.604, then 1.62, which the pound failed to breakthrough yesterday.
Trend: Up, but it will be safe to enter long at the support. Let go of position if the price action goes below 1.570.
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