27 May 2011

GBP/USD Analysis

Britain’s pound appreciated to the highest in two weeks versus the dollar after a report showed the U.S. economy grew less than economists forecast.

In the US, Personal Consumption Expenditures Similar to Consumer Price Index measuring changes in prices of consumer supplies and services is expected to reduce by 0.1% to 0.5%, and to 1.8% on the Price Index. Meanwhile the Core Personal Consumption is expected to rise by 1% both here and on the Price Index.

Both news weaken the dollar and strengthen the pound in what is seen as a reversal from the bearish trend for the pound which lasted for 2 weeks.

The pound rebounded from support at 1.608 and spiked towards resistance at 1.636.

On technical analysis, support now lies at 1.636 and next at 1.630. Resistance now stands at 1.646.

With no UK news today and a likely weaker US spending, inflation and housing news, the pound may attempt the resistance line.

CCI continues to be out of the BB lines. There is no sign of reversal, ony signs of the pound being overbought.

26 May 2011

GBP/USD Analysis:
A series of bad news has brought the Euro back to its 1.40 level. The pound follows, but find strong support as exhibited yesterday at 1.608.

There will not be many UK news except for 1 at 1400hrs on housing index. There will be more impactful US news tonight. The dollars has been trading higher.

Support for the pound is at 1.626 and next at 1.620. CCI has move up and break out of all the BB lines. It can indicate a potential spike up before a return to the support.

Resistance is at 1.635. A need to break past this value in order for the pound to achieve higher.

2 May 2011

GBP/USD
Bank holidays.
Don't expect much movement. Or movement to cause any major breakout.
The pound has already hit 1.67 victor the the first resistance. Support is at 1.66 then 1.65.

Without news the price will be ranged within the resistance and support.