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.