3 Mar 2010

GBP/USD Analysis:
UK consumer confidence in February rose for the second consecutive month to hit its highest level since January 2008, according to the Nationwide Consumer Confidence survey. This news at 0801hrs SGT gave a boost to the pound, raising it above 1.500, hitting high at 1.5048.

Looking at its counterpart, the Euro cleared the 1 hour chart EMA200 and recovered from its low to hit back at 1.365 from 1.343.

Has traders forgotten the Greece problem? Or is this an opportunity for risk taking? Or a major retracement is on the way?

Yesterday analysis: In fact the whole day, the pound has been hovering around 1.485 and 1.495 as expected. The up movement only start this morning.

Today expectation: With UK service PMI release at 1730hrs SGT, the services sector, which includes the financial services sector, has seen improvement, rising above 56 points but then dropping to 54.5 last month. It’s predicted to edge up to 55 points, showing stability.

Potentially, the pound which now hover above EMA21 (1 hour chart), may break EMA55 to meet resistance at 1.508, than 1.519.

Support on the other hand is at 1.487, which breaking this may sent a big C-wave down to 1.43.

Price range may be contain within 1.500 and 1.508, which means that the pound will continue its way up. The decision for any direction will depends on Europe opening or the UK news. The new direction may be set during US opening.