WARSAW (Thomson Financial) - Poland's zloty eased off a one-week high today, with investors looking to a raft of data this week for signals on the strength of the economy and likely timing of a next rise in interest rates.
The statistical office today releases data on average employment and wages for May, with investors expecting a rise of 8.3 pct year-on-year. A day later the office publishes industrial production and producer price numbers for May. Core inflation data for May is today.

The buying point of GBP/PLN is at 5.6310; triggered by bouncing on the previous resistance and forming a new support level and failure to make lower bottom then the previous support of 5.6268; the market is in an uptrend towards 5.6465.

- Fibonacci retracement at 23.6% is the take profit at 5.6465
- Fibonacci retracement at 61.8% represents the stop loss at 5.6145

The following technical analysis gives us a detailed lookout on what is expected to happen to GBP/PLN

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of the two moving averages below the zero line, the shorter term moving average is faster than the long term and is pointing upwards with break of zero line with high volume. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine a bullish market and approaching to overbought area.

The zero line of the ROC (Rate of Change) is very important to understand the strength of the market and as we see on the graph; it breaks the zero line and moves upwards. For the momentum oscillator we have to concentrate at the zero line and the trend of the oscillator.
Most of the indicators show us the strength of the GBP against the PLN (Polish zloty) and the continuation of the up trend


* The following analysis is for information only; Finotec is not responsible for any
decisions or misinterpretations based on the given text.

By Finotec’s professional analyst,
Tony B.

dealingdesk@finotec.com