11 Mar 2014; GBPUSD

11 Mar 2014; GBPUSD

US stocks dip due to poor China economic results. Coupled with the poor news from France Industrial production, it all brings the pound back from the high of 1.68 to 1.66. Or simple from the technical point of view, a reason for profit taking after hitting the resistance line.

FOMC in last night speech by Plosser said that the US economy will grow and unemployment rate to decline. The effect is a stronger USD after this morning poorer than expect UK BRC retail sales monitor.

Now the pound is sustained on the support line 1.662 and 1.660 happened to be the daily EMA55. Few major news will determine whether the price hit 1.66 or swing back above EMA21 at 1.667.

The news to watch are UK Inflation and Manufacturing.

At the current price is bounded 1.6635 and 1.6650. Therefore expecting a breakout in either direction. If GBP goes north the resistance is at 1.670 which is also the hourly EMA200 line. Support is at 1.660 and 1.657.

It will be a good sell at 1.670 and expect a retrace back to  1.667. A break south at 1.660 will be a good sell to 1.657 before any buy at 1.657.

Daily CCI(34) continues to be flat with a break south pending and there is no indication of reversal. So there is a possibility the poorer than expected news the afternoon will continue the south-bound direction.