13 Apr 2011

GBP/USD Analysis
The news at 1630hrs SGT on UK CPI shift the pound down to support at 1.623. It rebound back to resistance at 1.63 and hit 1.633.

During the US trading session, the pound was squeeze between these 2 lines. It further squeeze between 1.624 and 1.628.

Today the action news come at 1630hrs SGT on UK Claimant Payout. The expectation is that there will be less payout meaning the economy is doing better. US retail sales is at 2030hrs SGT, expecting the retail to do better. As seen one pull and one push, the pound is expected to be ranged or whipsaw.

Golden Sachs dumped commodities yesterday. This cause oil and gold to fall from its high, suggesting a strengthening of the dollars.

Technically, CCI is down. Support at EMA21 at 1.623, then 1.617. Resistance is at 1.628. Breaking this will permit the pound to go towards 1.63/ 1.633. Breaking 1.633 will be a good zoom towards 1.64.

There is a whipsaw news expecation, plus a lot of support and resistances, thus either play with small profits or wait for breakout at 1.620 and 1.635