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.