GBP/USD 1.6716 – 3 December 2009

GBP/USD Open 1.6661 High 1.6720 Low 1.6552 Close 1.6627
Pound/Dollar made a lowering attempt on Wednesday, sliding down to the 1.6552 support, but failed to continue the downward momentum, and turned sharply upward, drilling up the 1.6995 resistance, and now continues climbing. Signals are expected to be bullish in the short term, if quotes can remain consistently over the last resistance, but it may still be vulnerable to another unsuccessful break, which may bring downward pressure, especially if the Cable drops today down to the 1.6552 support. In upward direction, if the nearest resistance at 1.6720 is penetrated up, new upward spark could strengthen the Sterling further towards next target 1.6840. This would seriously threaten the downward channel. The CCI indicator is negative on the 1 hour chart, suggesting bearish pressure.
Technical resistance levels: 1.6720 1.6840 1.6950
Technical support levels: 1.6552 1.6420 1.6305

Trading range: 1.6730 – 1.6655
Trend: Downward
Sell at 1.6716 SL 1.6746 TP 1.6666


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