Momentum holds U.S. dollar while sterling looks to recover
Unemployment in the U.S. probably rose at a slower pace and the manufacturing slump eased this month as evidence mounted that the end of recession is in view, economists said before reports this week.
Anthony Boyajian 
29 June 2009
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| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.6500 | Sell a break of support level at 1.6430 | |
| GBP/USD | Buy a break of resistance level at 1.6565 | Sell a break of support level at 1.6375 |
| Buy a bounce at 1.6430 | Sell a failure of breaking the resistance 1.6500 |
Fundamental
Unemployment in the U.S. probably rose at a slower pace and the manufacturing slump eased this month as evidence mounted that the end of recession is in view, economists said before reports this week.
The jobless rate rose 0.2 percentage point to 9.6 percent, the highest level in 26 years. Government efforts to stabilize housing and consumer spending are only now starting to pay off, indicating it will take months before a recovery develops. The job market will remain one of the biggest threats to the emerging rebound as companies from General Motors Corp. to Kimberly-Clark Corp. focus on cutting costs by trimming payrolls.
Technical
The U.K. currency breaks previous resistance and continues its uptrend. Technically the market shows us a strong demand with some confirmation of indicators like RSI, which is above 50% level, we can see divergences on MACD and Bollinger gives us a bullish signal by closing the candle above the middle band.
GBP/USD (Daily Chart)
The primary tendency is in an uptrend but forms triple top.
GBP/USD (4 Hour Chart)
The pair is in a clear range market.
GBP/USD (Hourly Chart)
The Minor trend breaks Fibonacci fan first level.
Resistance
1.6500
1.6565
Support
1.6430
1.6375
Finotec Analysis Team
29 June 2009
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