FX GBP Analysis 28 June 2011
FXFXFX.com 2011-06-28 12:40:05 AM GMT +0800

FX GBP Analysis 28 June 2011

Supported by recovering investor risk appetite, weak USD sentiment. But GBP/USD topside limited by caution before tomorrow''''s Greek parliament vote on austerity package; increased bets on second round of quantitative easing from BOE amid worries over weak UK economy. Data focus: 0830 GMT UK 1Q GDP, 1Q balance of payments, 0900 GMT UK BOE Gov. King gives evidence to MPs on Inflation Report, 1000 GMT UK May Land Registry house price index. Daily chart mixed as MACD bearish, but stochastics turning bullish at oversold; bullish hammer candlestick pattern completed yesterday. Resistance at 1.6011 (yesterday''''s high), then at 1.6046 (Friday''''s high) and 1.6070 (Thursday''''s high); breach would expose upside to 1.6261 (Wednesday''''s high, near 100-day moving average), then 1.6327 (55-day moving average), 1.6384 (June 15 high) and 1.6441 (June 14 high). Support at 1.5912 (yesterday''''s low); breach would expose downside to 1.5821 (Jan. 31 low), then 1.5750 (Jan. 25 reaction low).