14 Apr 2011

GBP/USD Analysis
The performance of the GBP/USD was confined within the range 1.631 and 1.6230. The occassion of news spike the pound up and down but trade within a range.

Only one major news, which is on US unemployment claims and PPI both at 2030hrs SGT. Both are expected to produce a better results for the economy recovery, but the fear of inflation is on. The dollars has been weak against the Eur and the pound in the recent tradings. Eur hit high at 1.45. These means that the GBP/USD pair will continue the range trading, a weak dollars but a stronger US economy.

Looking technically, CCI is in favour for a short. Strong support was witnessed at 1.623. Resistance was at 1.631/32. The hour chart clearly shows a squeeze with all the EMAs forming a resistance at 1.631/32.

From the daily chart, a breakout is possible and that will define new resistance at 1.64. Support if broken at 1.623 will bring the pound lower to 1.617