GBP/USD 1.6247 – 18 December 2009

GBP/USD Open 1.6160 High 1.6332 Low 1.6089 Close 1.6153
Pound/Dollar made a decreasing movement down to the 1.6089 bottom on Thursday, as expected, which appeared to be good support and the Cable corrected upwards, closing the day at 1.6153. Although this fact leads us to un uncertain short term trading expectations, our preferable scenario is downwards from good high point. Please be aware, however, for possible upward turning prospect, as we currently observe. We expect only consistent movement above Wednesday’s top at 1.6405 to be a serious threat to the bearish outlook and lead to possible test of the next 1.6490 resistance, which would confirm the bulls’ domination. The nearest support is yesterday’s bottom at 1.6089, followed by 1.6010. Break bellow this level may weaken the Sterling further towards 1.5925. The CCI indicator is very positive on the 1 hour chart, suggesting upward pressure.
Technical resistance levels: 1.6332 1.6405 1.6490
Technical support levels: 1.6089 1.6010 1.5925

Trading range: 1.6260 – 1.6185
Trend: Downward
Sell at 1.6247 SL 1.6277 TP 1.6197


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