20 Oct 2009

GBP/USD Analysis:
The pound has indeed swing back and strenghten against the dollar yesterday. It hit its resistance at 1.64/ 42 yesterday, making a clear for WMA5 to be above EMA100 and EMA55 on the daily chart.

Wht is left to watch is for the EMA21 to clear EMA100/EMA55, then that will clearly bring the resistance at 1.64/42 region to become the support.

The news this week and today will set the pace for the pound.Public Sector Net Borrowing, Lending by the government doubled last month, indicating that more money is going to be spent. From 16.2 billion, the expectations for this month are for a small drop to 15.2 billion. This news will be published today at 1630hrs SGT.

As of now resistance is still at 1.64/42 region. The next is at 1.647. Support is at 1.622, then 1.614.

Trade Plan sugesstion: Wait for the news at 1630hrs, if it is a positive news, do a long , but TP before US opening or TP at around 1.642 to 1.647 region. Alternative, choose to long at 1.622 region.