GBP/USD Analysis:
Crude has been climbing steadily to a near $79. That means a weaker dollar and that could means a greater demand for crude as the world economy improves. $80 look like a phychological resistance.
The Dow took a turn yesterday, registering a dip. Added, most of the US news on housing and core PPI was reported worse than expected.
The pound hit another resistance at 1.647 and made new high at 1.649, but now has retraced to 1.636/38.
The dollars is looking for some consolidation from the way Dow (equity market) and the way crude price goes. In fact tonight US crude oil inventories at 2230hrs SGT is something to note and may force the price to fall thus suggest the returning strength of the dollars.
At the technicals, the EMA21 has not clear EMA55 and EMA100. Obviously pound hit resistance at 1.649 and retrace. Afternoon, at 1600hrs, UK annoucing MPC minutes plus 1800 UK CBI Industrial Order Expectations. This may force the pound to retrace to support at 1.622, then 1.612. CCI is now above 100, meaning that though it can climb higher but is in for some consolidation
If pound managed to clear 1.65, then next resistance is at 1.666.
Trade Plan Suggestion: Wait for consolidation to finish. It may rebound at 1.622, but it may goes further down to 1.612. If it break 1.65/ 52, go for long and TP at 1.660/65.
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