6 Dec 2016

6 Dec 2016

US reported a better than expected non-manufacturing PMI. While earlier on UK reported also a better than expected service PMI.

The pound does not look like it is going to reverse. It continue to hit new high at 1.275, despite the fundamental of a stronger US data.

CCI has strong indication of over bought. Very over bought. So I am expecting at least some off stream from the pound.

Resistance is at EMA100 at 1.282. Now with the WMA5 within the EMA55 and EMA100 region, support is at EMA55 at 1.26.

With the lack of major news, the pound may move side within the range 1.270 and 1.278. Any spike today may also be constraint within EMA100 and EMA55.