5 Dec 2016

5 Dec 2016

The pound gain after comments from EU for possible continue access to the market. This despite a better US unemployment rate failed to stop the pound from rallying.

On the rest of the currencies against the USD, most of them lost strength against the dollars.

Today UK will release service PMI at 1730 SGT and US FOMC Dudley speaks at 2130 SGT followed by US ISM non manufacturing PMI at 2300 SGT.

The pound has gained from the support at 1.235 to 1.257. It makes peak at 1.257 then to 1.270 and may attempt 1.285.

On the daily CCI, the pound is clearly overbought. The peak at last Friday 1.273 was brought back to 1.262. I am expecting a down to support at 1.26 (EMA55) and 1.252 (EMA21) for some profit takings this week.

On the contrary, the pound may push higher to 1.282 (EMA100) and hover in the range betwen EMA100 and EMA55.

As such, it will be either to sell the pound at the resistance or to buy the pound at the support.