GBP/USD 1.4715 – 3 June 2010

GBP/USD Open 1.4646 High 1.4767 Low 1.4561 Close 1.4651
After the good but exhausting rise, which took place earlier this week, on Wednesday Pound/Dollar corrected downward, in line with negative Interbank sentiment at nearly -33%. The Cable dropped from 1.4767 to 1.4561 yesterday, closing the day at 1.4651. Today Sterling is making further recovery efforts. First resistance is yesterday’s top at 1.4767. Break above it should extend the bullish movement further towards 1.4870. The nearest support is yesterday’s bottom at 1.4561. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4446. Today is the UK Halifax house price and UK CIPS services index at 8 and 8:30 GMT respectively. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure but the last red candle call for short term bearish impulse. The value of the RSI indicator is positive and consolidating, MACD is positive and inclining upwards, while CCI has crossed up the 100 line but is running out of steam on the 1 hour chart, giving overall long signals.

Technical resistance levels: 1.4767 1.4870 1.5000
Technical support levels: 1.4561 1.4446 1.4355

Trading range: 1.4725 – 1.4655
Trend: Downward
Sell at 1.4715 SL 1.4745 TP 1.4665

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