12 apr 2011

GBP/USD Analysis the range between 1.635 and 1.640 was observed yesterday. But the pound attempt to break both barrier to hit low at 1.630 support and 1.645 resistance. The break happened during US trading hours when it goes below 1.635 towards 1.630. There are conflicting good and bad news for th UK economy. The UK housing is still not picking up and retail sales was not that ideal. On the other side, the USD is also not performing. Looking technically, GBP has cut CCI with an overbought at the first BB line, an indication for a good time to short. If the down trend or a correction is to follow after last week peak at 1.643 and yesterday peak, the support will be at 1.630 then 1.624 at EMA21. On the high side, if 1.64 to 1.645 proves to be the resistance. If that breaks, then it is a sign of a bullish reversal. All short positions should let go. Then potential, we will see 1.640 as the new and strong support.