16 Apr 2014; GBPUSD

16 Apr 2014; GBPUSD

I still maintain a down trend - with technicals from my CCI(14) coupled with BB(14, 0.9) and BB(14,1.2). The CCI is still in the BB region and has not exit after being over bought at 250 points.

It is a see-saw from the news. A "better" UK economic report at 1630hrs SGT yesterday and followed a decision by the Fed that US will maintain interest rate (a sign that the economy is still not ready for recovery).

The news force the pound to climb above 1.6730 and later to 1.6750. It did not break resistance at 1.6760.

Today at 1630hrs SGT we have UK claimant payout. It is expected that the UK to be doing better with less payout. Will that force the pound to climb and break resistance at 1.6760 - possible. If by doing so, the next level of resistance is at 1.6800 to 1.6820 region.

A failure to break above 1.6760 and a break below 1.6690 is the support at 1.6660. The price now is hover between 1.6740 and 1.6710.

From the 1 hour chart support is at EMA200 at 1.6710.

As such it will be a good wait for the news and see the direction. Alternative sell at around 1.6740 and buy around 1.6710 before the news and take small profits. Abandon position if a break occur at 1.6750 and below 1.6690.

If you are playing the 15 minutes using BB(14, 1.8), wait after the first candle after breakout. Again followed the abandon plan as mention above.