GBP/USD 1.6158 – 21 December 2009

GBP/USD Open 1.6133 High 1.6237 Low 1.6062 Close 1.6154
Pound/Dollar made a significant bearish movement on Friday, from the 1.6237 top to the bottom at 1.6061, closing the week at 1.6154. Our expectations are for further downward extension. We have a good historical support at 1.6100. On the daily schedule we have an RSI indicator divergence, which shows minimal possible upward correction towards the 1.6237 resistance. Our preferable scenario, however, is in favour of the bears with objectives towards 1.6089, the break of which may lead to future descending pressure with potential test of the psychological 1.6000 level. The CCI indicator is neutral on the 1 hour chart, suggesting calm market movements.
Technical resistance levels: 1.6332 1.6405 1.6490
Technical support levels: 1.6089 1.6000 1.5925

Trading range: 1.6170 – 1.095
Trend: Downward
Sell at 1.6158 SL 1.6188 TP 1.6108


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