GBPUSD Analysis: @1430 SGT
It looked like the dollars is continued to strengthen. Euro has lost its lustre because of what happen in Greece and now Portgual. This affect the pound.
The lastest news on the UK economy is that it has start to grow. Figures released by the Office for National Statistics last week showed that the UK economy grew by 0.1% in the final three months of 2009. Now, the pound will braced for the Bank of England to call a halt to its emergency programme of money creation after pumping £200bn into Britain's struggling economy over the past year.
Technically, the pound failed to clear 1.62 last week and this week. It has now fallen back to 1.59 level. It is now supported at 1.58. London market is opening soon in an hour time (based on the time I write this analysis), if it takes the news well, rebound is possible and we can expected the pound to hit back to 1.60.
Watch on the other hand if pound fall below 1.57. A break below that level will see the pound going towards 1.55/54.
Boundary for today at 1.60 and 1.58. The day chart shows that the pound will move within this range until a break out occur. We can therefore trade within this range, but prepare to close long position if pound goes below 1.58 or short position if pound breaks 1.60 today.
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