GBP/USD Analysis:
The pound was doing well, hitting high at 1.604 right after hopes for a recovery in the housing market were fuelled today as Halifax, the building society, recorded a 1.6 per cent increase in house prices for September.
But U.K. manufacturing production unexpectedly slumped in August to the lowest level since 1992, a sign the economy is struggling to shake off the recession. This entirely pull the pound back to 1.588.
Today will be a quiet day. Another day of range trading from 1.602 to 1.582. Resistance is still at 1.6025, then 1.6075, then 1.62. If wee can clear 1.6075, there will be a indication for pound to untangle this dead lock of moving side way.
Support is at 1.570, then 1.554. Breaking below 1.570 is a serious indicator for another round of downward movement.
Trading Suggestion: CCI is still "long" but a prolong side movement has already show weakness of reversal. Coupled with the lack of news today, I am expecting a breakout. Therefore if there is a need to trade, trade with taking immediate small profits. Either long of short will be good, but keep within the range of 1.6025 and 1.580
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