29 Apr 2011

GBP/USD Analysis
It is a wow yesterday, with how weak the dollars goes. Gold hit $1535, silver hit near $50.

Both Euro and pound made new high. The pound attempt 1.67, putting the support now at 1.66, and with a potential to zoom towards 1.7.

The University of Michigan Consumer Sentiment Index is expected to remain near a six-month low when the final April numbers are released Friday as rising gas prices continue to weigh on consumers minds and push up inflation expectations

GBP held near a 17-month high versus the USD today, keeping gains as investors placed more bearish bets on the USD after the Fed signaled it was in no hurry to reverse policy. British consumer confidence data fell again, however, GBP/USD held support and is heading higher again.

Support is at 1.66, then 1.646. Resistance is at 1.67, then 1.686 (Fib projection)

CCI indicates a down, meaning a consolidation.