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