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.
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