GBP/USD Analysis:
At 1300hrs SGT yesterday, a report from bloomberg by Fitch ratings which downgrade the pound, brought the upward movement to a halt. The pound came down from 1.68 to 1.66. It is now at 1.67.
But following the Fitch ratings, a series of comments on the pound about the economy "L" shape recovery, about the Inflation Report that showed inflation picking up sharply in the near term but returning to target in 2 years if rates follow market expectations.
Today we have more news on UK Claimant Count Change and Unemployment Rate at 1730hrs SGT. Claimant Count Change is expected to stay stable, and move to 20.2K. The Pound will shake in any case. In the past two months, the unemployment rate “refused” to rise to 8%, beating economists’ expectations and standing on 7.9%. Predictions are for a rise to 8%.
Technically, the pound has not break out of the 1.68/ 1.69 region. But support is at 1.666, suggesting that a strong one will sustain and move the pound within the trade range of 1.66 and 1.68.
Trade Plan suggestion: As CCI is out of the BB and hitting near 150 and now has reversed, to be conservative for long position is best taken at support line. If after the news a breakout does occur at 1.68, take long and take small profits in the 1.69 and 1.70 region.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment