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.