GBP/USD Pair @ 11.00 am (Malaysia)

Trading Range Is Between 1.4580 to 1.4779

BUY Area - 1.4655 (First Target : 1.4779. Next : 1.4839)

If break 1.4779 candle may test 1.5000 area. It depend if Initial support hold at 1.4580 area. InsyaAllah.

Sell Area - 1.4617 (First Target : 1.4580)

If break 1.4580 candle may drop furthur at 1.4443)

Allah HU

From Market Oracle For You, please read:

Funding the Fund with Gold.

The G20 announcement of tripling IMF resources to $750 billion offered an extra boost for equity markets and higher yielding currencies at the expense of further damage in the dollar and the yen. The G20 confirmed our predictions that central banks will incorporate gold sales to finance assistance for lower income nations. Central banks gold selling would also help stabilize any renewed selling in the greenback and prevent any unwanted appreciation in other currencies.

With US jobless claims at fresh 27-year high of 669K and continuing claims at a record 5.73 million, it is a reminder that macroeconomic deterioration in the US is far from having reached its trough. Even if Friday's March jobs report from the US shows further stabilization on the payrolls front (as did the last 3 reports), the US unemployment rate is likely to exceed 8.1%, thereby, surpassing that of the Eurozone and Germany , a development that could not be imagined just a few months ago by the classic critics of the Eurozone model. And with US consumer credit delinquencies in Q4 surging to an all time high, the deleveraging process within US households relative to that of the Eurozone is another dynamic supporting medium term stabilization in the single currency.

Allah Hu.

GBP/USD Pair @ 07.37 am (Malaysia)

Trading Range Is Between 1.4100 to 1.4779.

BUY Area - 1.4423 (My Target is 1.4482. Next : 1.4534 Next : 1.4614).

SELL Area - 1.4385 (My Target is 1.1.4323. Next : 1.4271).

Salam and Hi,

Yesterday my buy area met at 1.4327 and met my target at 1.4450 and stop at 1.4482. Congratulations who got it and I hope you got your target. As I've told before - please set your target and be more discipline. Don't forget the basic before you enter the positions.

Trading Range Is Between 1.4100 to 1.4779.

Please be alert on all reversal signal at H4 like Bearish and Bullish Reversal Signal including Doji, morning star, bearish/bullish continuations candle or Abandoned Baby and Harami. Be happy today and please set your target.

Allah Hu.

Keep On Eye Out For Recovery On GBP/USD

GBP/USD Today @ 07.27 am (Malaysia):

BUY Area - 1.4327 (My target is 1.4385 Second Target : 1.4450 Third Target : 1.4550)

SELL Area - 1.4283 ( My target is 1.4248. Next : 1.4175 Next 1.4050)

Salam and Hi........

Yesterday my buy area at 1.4243 met and met my target at 1.4336 and stop at 1.4376. Congratulations to those who got it at least 60 pips or more.

Today trading range is still between 1.4100 to 1.4779.

Below is some Tips from Kathy Lien site for your reading that I've copy and paste it here. Maybe this statement may help your trading today.

Until then let see together what will happen on GBP/USD today.

Allah Hu.



Keep an Eye Out for a Recovery :

Although the UK economy still faces many risks in 2009, there is hope. Consumer spending has been pretty resilient with November retail sales rising for the first time in 3 months. If the global economy begins to recover, we expect the UK economy to outperform its peers thanks to the Bank of England’s proactiveness. The currency has sold off significantly, providing additional stimulus for the battered economy. Even if there is no full-blown recovery, the UK economy is much further long in their slowdown than the Eurozone. Therefore if we see sharply weaker growth in the Eurozone economy in 2009, expectations for more aggressive ECB interest rate cuts may be all that the British pound needs to recover against the Euro. As for the US dollar, the recovery could come sooner if the quantitative easing forces the greenback lower. When the UK economy begins to recover, so will its currency.

Technical Outlook for the GBP/USD

The British pound experienced a drastic sell-off throughout the year, tumbling to a level not seen since 2002. The pair lost roughly 5,000 pips as the BOE reduced the interest rates far more aggressively than other central banks. Currently, the pair is well below the 200-week and 50-week Simple Moving Average, reflecting in the change of the trend from an upward to a downward bias. Nevertheless, the pair seems to be oversold for the time being, needing a major retracement if it will continue to depreciate further.

The pair still remains in the sell zone that is established using the Bollinger Bands, and until the price closes above the first standard deviation, it could experience a further downtrend. Although the pair is destined to retrace at some point this year, the price still remains within reach of breaking further, establishing a prolonged downward trend. Near term resistance is at 1.5723, the December high. The currency pair could hold above 1.45, but if it breaks that level, the next meaningful support is not until 1.40, which served as support from 2000 to 2001.

GBP/USD Pair @ 07.00 am (Malaysia)

BUY Area - 1.4243 (My Target : 1.4302. Next : 1.4336 Next : 1.4411)

SELL Area - 1.4203 (My Target " 1.4146. Next Target : 1.4034)

Salam and Hi.........

Trading Range is between 1.4100 to 1.4779.

Allah Hu

GBP/USD Pair @ 07.37 am (Malaysia)

SELL Area - 1.4339 (First Target : 1.4250 Next : 1.4200 Next : 1.4126)

BUY Area - 1.4377 (First Target : 1.4493)

Salam and Hi.........

Trading Range is between 1.4100 to 1.4779.

Allah Hu

Why USD On A Tear ?

Why is the U.S. Dollar on a Tear?
Last updated 3/27/2009 9:28 AM EST (GMT -5)

Tags: u.s. dollar, global reserve currency

Kathy Lien
Director of Currency Research, GFTlastchangevolumeLast Updated: 10 min ago
With the rally in the stock market and recent economic data invigorating hope for a U.S. recovery, traders needed a good reason to continue selling dollars. The big story this past week was the possibility of the dollar being replaced by the a global reserve currency but reports that this topic will not be discussed at the upcoming G20 summit has provided some relief. A confluence of factors have driven the U.S. dollar higher today. U.S. economic data was mixed which means that it did not contribute the rally. According to the latest reports, personal spending has slowed, personal income dropped to the lowest level in nearly a year while inflation ticked modestly higher.

There are 5 different reasons why the dollar has staged a sharp rally this morning.

1) Comments from German Finance Minister

Most importantly, the rally in the U.S. dollar began when the German Finance minister issued a critical warning about the negative consequences that fiscal irresponsibility in Europe could have on the Euro. Although the market chose to react to his comment, it was nothing groundbreaking. All countries with a growing budget deficit will struggle to make ends meet and there is no question that the lagging monetary policies of the Eurozone will put a greater strain on the region.

2) ECB Expected to Cut Interest Rate

Secondly, at a time when many countries have reported stronger inflation pressures, incoming data from Germany suggests that inflation in the Eurozone's largest country is still slowing. Weaker economic data and softer inflation pressures could push the European Central Bank to cut interest rates to 1.00 percent next week.

3) Global Reserve Currency Not a Topic at G20

Investors are also relieved that a global reserve currency to replace the dollar would not be discussed at the upcoming G20 summit according to senior Japanese and Russian officials.

4) Japanese Repatriation

The Japanese are buying Yen and selling all of the other major currencies ahead of their March 31st fiscal year end and finally,

5) U.S. Equity Futures Down

U.S. equity futures are down suggesting that the improvement in risk appetite witnessed yesterday is fading.

Dollar To Be Replaced !!!

UN and PBOC Call For Dollar To Be Replaced By Single World Currency
by Larry Edelson on March 26, 2009

It’s starting, just like I predicted it would over 10 years ago. And it’s on time. By 2011 — which I have pointed out several times, is what I call a ‘panic cycle’ year in the currency markets — the dollar should be gone as a reserve currency.



See articles below, both the U.N. and the PBOC are now calling for the dollar to be replaced. — Larry

U.N. Will Recommend that the World Should Ditch the Dollar

By Jeremy Gaunt, Special to Salem-News.com



UN Currency specialist Avinash Persaud has long argued that the dollar would give way to the Chinese yuan as a global reserve currency within decades.



(LUXEMBOURG (Reuters) ) — A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.



Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.



Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.



“It is a good moment to move to a shared reserve currency,” he said.



Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value — though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.



Some analysts said news of the U.N. panel’s recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.



“Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar’s slide between 2002 and mid-2008,” CMC Markets said in a note.



Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.



It has significantly reduced the dollar’s share in its own reserves in recent years.



Good Time



Persaud said that the United States was concerned that holding the reserve currency made it impossible to run policy, while the rest of world was also unhappy with the generally declining dollar.



“There is a moment that can be grasped for change,” he said.



“Today the Americans complain that when the world wants to save, it means a deficit. A shared (reserve) would reduce the possibility of global imbalances.”



Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.



The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent’s economic clout, which can be valued against other currencies and indeed against those inside the basket.



Persaud said there were two main reasons why policymakers might consider such a move, one being the current desire for a change from the dollar.



The other reason, he said, was the success of the euro, which incorporated a number of currencies but roughly speaking held on to the stability of the old German deutschemark compared with, say, the Greek drachma.



Persaud has long argued that the dollar would give way to the Chinese yuan as a global reserve currency within decades.



A shared reserve currency might negate this move, he said, but he believed that China would still like to take on the role.



Special thanks to Jeremy Gaunt, European Investment Correspondent, for this report. (editing by Patrick Graham)