GBP/USD

Sterling:

Confidence in the economy will remain very weak in the short term with expectations of a further deterioration and deep recession. The near-term Sterling trends will also be influenced strongly by trends in risk appetite with a particular focus on the UK banking sector. The UK currency will come under further pressure if confidence in the sector continues to deteriorate while any reassurance over the banks could trigger a sharp corrective rally for the UK currency. In this environment, trading volatility is likely to remain at elevated levels with good buying support on retreats towards 1.35. The Euro looks to offer little short-term value above the 0.95 level against Sterling.


Sterling remained under pressure on Friday and weakened to a fresh 23-year low near 1.35 against the dollar. Sterling also dipped to three-week lows around 0.9470 against the Euro following the UK data. Overall confidence in the economy will remain extremely weak in the short term, especially with budget fears increasing

There will still be some scope for a correction from over-sold conditions, especially after a weekly decline against the dollar of close to 8% and Sterling recovered back to near 1.38 later in US trading. Given the lack of confidence, rallies quickly attract selling pressure and Sterling retreated again towards 23-year lows on Monday with a test of support below the 1.36 level before a rebound to above 1.37 as UK banking shares rallied.

GBP/USD Pair @ 11.00 am (Malaysia)

SELL Area : 1.4485(First Target : 1.4400. Second : 1.4350 Third : 1.4292)

BUY Area : 1.4527(First Target : 1.4606)

Salam and Hi....

Yesterday Sell area met at 1.4577 and met my second target at 1.4467 and stop at 1.4422.

So price at 1.4350 still hold and candle bounce back this morning to test Mr. Pivot at 1.4505. As long as 1.4350 not broken candle possible to test 1.4779.

Trading Range is between 1.4350 to 1.4779 as 1.4779 will be initial resistance.

Allah Hu

GBP/USD Pair @ 11.00 am (Malaysia)

SELL Area - 1.4577 (First Target : 1.4514 Next : 1.4467 Next : 1.4350)

BUY Area - 1.4629 (First Target : 1.4729 Next : 1.4850)

Salam and Hi,

Yesterday the Sell area met at 1.4656 and easily break my target at 1.4575 and stop at 1.4514 - fail to reach my second target at 1.4452. From here candle rebound back at 1.4600 area.

At this moment candle in consolidations mood. Trading Range is between 1.4394 to 1.4779 area. As long as 1.4394 hold and not broken, candle will test again 1.4850 and if success candle may test 1.5000 area within few days.

Let see this happen and happy trading.


Allah Hu

EU presidency: US stimulus is 'the road to hell'

BRUSSELS (AP) -- The head of the European Union slammed President Barack Obama's plan to spend nearly $2 trillion to push the U.S. economy out of recession as "the road to hell" that EU governments must avoid.


The blunt comments by Czech Prime Minister Mirek Topolanek to the European Parliament on Wednesday highlighted simmering European differences with Washington ahead of a key summit next week on fixing the world economy.

It was the strongest pushback yet from a European leader as the 27-nation bloc bristles from U.S. criticism that it is not spending enough to stimulate demand.

Shocked by the outburst, other European politicians went into damage control mode, with some reproaching the Czech leader for his language and others reaffirming their good diplomatic ties with the United States. The leaders of EU's major nations -- France, Britain and Germany, among others -- largely ignored Topolanek and his remarks.

Obama pays his first official visit to Europe next week, aiming to thrash out reforms to the global financial system with the Group of 20 nations and call on NATO allies to commit more troops to the U.S. war in Afghanistan.

Europeans leaders hope the new U.S. administration will agree with them on tightening oversight over the global financial system -- which they see as crucial to fixing the global economy.

Instead, the United States is focusing its efforts on economic stimulus and plans to spend heavily to try and lift itself out of recession with a $787 billion plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.

To encourage banks to lend again, the U.S. government will also pump $1 trillion into the financial system by buying up treasury bonds and mortgage securities in an effort to clear some of the "toxic assets" -- devalued and untradeable assets -- from banks' balance sheets.

Obama insisted Tuesday that his massive budget proposal will put the ailing U.S. economy back on its feet. "This budget is inseparable from this recovery," he said, "because it is what lays the foundation for a secure and lasting prosperity."

But Topolanek took aim at Washington's deficit spending.

"All of these steps, these combinations and permanency is the road to hell," Topolanek said. "We need to read the history books and the lessons of history and the biggest success of the (EU) is the refusal to go this way."

"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the liquidity of the global financial market," Topolanek said.

Topolanek spoke the day after he was ousted by his own parliament. The Czech Republic currently holds the six-month rotating EU presidency but its leadership is in question, with Topolanek hanging on to a caretaker government at home after losing a "no confidence" Tuesday.

In Washington, State Department spokesman Gordon Duguid said he did not expect the Czech poltical turmoil to affect Obama's upcoming trip to Prague because the president was traveling to attend an EU event.

Analyst Nicolas Veron, a research fellow at the Bruegel think tank, said Topolanek's view is not widely shared by EU leaders.

"I don't think the damage can be as large as the very strong wording of this would lead one to think," he said. "Many people have doubts about the U.S. plan but what he said is much stronger."

Veron said European leaders worry that the U.S. plan may not work or could cost taxpayers heavily -- but he did not doubt the U.S.' "fiscal robustness" or that it still had extra room to maneuver to stoke economic growth.

Martin Schulz, leader of the Socialist group in the European parliament, immediately chided Topolanek, saying his comments were "not the level on which the EU ought to be operating with the United States."

"You have not understood what the task of the EU presidency is," he told the Czech premier.

EU Commission President Jose Manuel Barroso also said it was "not helpful ... to try to suggest that Americans and Europeans are coming with very different approaches to the crisis."

"On the contrary, what we are seeing is increased convergence," he told the parliament.

But Europe's resistance to the U.S. call for new stimulus measures is starting to weaken despite Germany's fierce opposition to any new spending program this year.

French President Nicolas Sarkozy said Tuesday he is prepared to support the economy with a new spending package. EU officials say they can't rule anything out -- even an EU-wide stimulus that could help nations like Ireland and Spain, which can't afford any extra stimulus.

British Prime Minister Gordon Brown has also supported U.S. calls to ramp up fiscal stimulus -- government spending and tax cuts -- although the Bank of England has warned that Britain's swelling public deficit may make it unable to afford new spending.

Associated Press writers Raf Casert in Strasbourg, France, Jane Wardell in London and Desmond Butler in Washington contributed to this report.

INILAH DIA KEMUSNAHAN ECONOMI CAPITALIST -----

ALLAH HU

GBP/USD Pair @ 11.00 am (Malaysia)

SELL Area - 1.4656 (First Target : 1.4575. Second Target : 1.4452).

BUY Area - 1.4677 (First Target : 1.4779. Second Target : 1.4850).

Salam and Hi........

Yesterday as aspected my buy area met and achived my second target at 1.4750 and close at 1.4779. From there candle drop back to 1.4636 and at this moment still in consolidations move from that drop. Looks like market is still testing 1.4850 today. Anyway fail to do so, candle may drop back to find 1.4350. From here maybe candle will test yesterday high at 1.4779. Good Luck.

Trading Range is between 1.4350 - 1.4850.

Breaking 1.4850 candle may test 1.5000 area.

Salam and Allah Hu.

GBP/USD @ 10.30 am (Malaysia)

BUY Area - 1.4571 (My Target is 1.4661. Next is 1,4750.Possible to test 1.4850)

SELL Area - 1.4531 (My Target is 1,4453)

Salam and Hi,

Yesterday as aspected candle break 1.4661 and stop at 1.4692. At this moments candle is on consolidations from 1.4692. Candle may test 1.4750 and if success, candle possible to test 1.4850. From here candle may test 1.4850 or 1.5000 area within few days.

Allah Hu.

GBP/USD Pair @ 11.00 am (Malaysia)

BUY Area - 1.4493 (First Target: 1.4584. Second Target :1.4661 Third : 1.4733)

Trading Range is between 1.3841 to 1.4661. Break 1.4661 candle will test 1.4985. But if fail candle may drop back to test 1.4473.

SELL Area - 1.4450 (First Target : 1.3841)

Salam and Hi....

Candle is still on consolidations uptrend move from last week. If fail to break and drop to 1.4473, candle is possible to test 1.4661 and possible to test 1.4985. Looks like Initial Support already performed at 1.3654, fail to test 1.3500 - major support for GBP/USD in 23 years old. If this happen no doubt candle will test 1.5372 area within a few days. Let see this happen and please be alert on all reversal pattern of candlestick.

Allah Hu.