11 Mar 2010

GBP/USD Analysis:
The British economy is still growing despite a surge of disappointing economic data. The National Institute of Economic and Social Research (NIESR) said that GDP grew by 0.3 per cent between December and February, compared with the preceding three-month period.

If the economy maintains momentum this month, economic growth for the first quarter of the year would match GDP in the final quarter of 2009.

But NIESR said that although the recession was over, the country would not rebuild total economic output to the levels seen before the slowdown for another two years, leaving the country in "a period of depression" until then.

Containerized trade volumes in and out of the U.S. softened alongside seasonal demand at several major ports in January, but compared to a year ago, broader trends of rebounding exports and stabilizing imports are surfacing, according to port officials.

Overall, it means a shift to the dollars for safety as UK struggles on both ends.

The 1 hour chart shows the WMA5 in between EMA21 and EMA55. A sign of unsure direction contained between 1.4985 and 1.4964. A break in this resistance and support will bring the price to the next level at 1.501 and 1.488.

My expectation: Both Eur and GBP is unsure. Daily chart show formation of doji. Trade and take small profit and ready to let go if direction is against you.