GBP/USD 1.6264 – 10 December 2009

GBP/USD Open 1.6266 High 1.6344 Low 1.6167 Close 1.6268
Pound/Dollar made a significant downward movement on Wednesday, reaching a bottom at 1.6167, from where the Cable sharply jumped to the 1.6344 top, closing the day at 1.6268. This should be regarded as a further extension of the bearish scenario with next objectives towards 1.6045. However, we need a consistent movement under 1.6167 to confirm the bears’ domination at this stage. The nearest resistance is yesterday’s top at 1.6344. Break above that level might trigger a stronger bullish adjustment towards 1.6476. The longer quotes remain below 1.6400, our preferable scenario would be bearish. The CCI indicator is in the oversold area and upwards on the 1 hour chart, suggesting upward pressure.
Technical resistance levels: 1.6344 1.6476 1.6666
Technical support levels: 1.6167 1.6045 1.5952

Trading range: 1.6250 – 1.6325
Trend: Upward
Buy at 1.6264 SL 1.6234 TP 1.6314


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