6 Nov 2009

GBP/USD Analysis:
There was alot of expectation coming from FOMC and MPC. In summary, FOMC said that intesrest rated will remain and that the economy is picking up. MPC reduced the expected quality easing program by 25billion pound and that sent the pound high hitting as much as 1.663.

US employment has reported a lower claim, indicating that indeed the economy is on its feet.

It will be a watch now for the pound in its abilities to clear 1.666 resistance. Today we have UK at 1730hrs SGT PPI Input. Evening we have major reports from the US on Non-Farm Employment Change at 2130hrs SGT.

The technicals does not appear to convice any direction. Despite CCI pointing up, but BB showed a squeeze. Moreover, the last round of down did not enter into negative CCI, showing a weak up.

Resistance is at 1.666, and then it may show some blue sky towards 1.698. Support is at 1.640 then 1.628

Trade Plan for the day: CCI is up, but wait for breakout at 1.666 then long andtake profit at 1.67/ 75 region if you are playing intra day. If price retrace, pick up and long around 1.64 to 1.645 region