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.