GBP/USD 1.4680 – 17 June 2010

GBP/USD Open 1.4732 High 1.4856 Low 1.4644 Close 1.4725
After strong rise at the beginning of this week, on Wednesday Pound/Dollar corrected deeply downwards, in line with negative Interbank sentiment at around -29%. The Cable depreciated from 1.4856 to 1.4713 yesterday, closing the day at 1.4725. Today the pair continued declining, but without strong impulse for now. First resistance is yesterday’s top at 1.4856. Break above it should extend the bullish movement further towards 1.4950. The nearest support is today’s bottom at 1.4644. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4549. Today’s focus is on UK Retail sales and CBI industrial order books balance at 8:30 and 10 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is negative and tranquil, MACD is negative and with slight decline, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.4856 1.4950 1.5100
Technical support levels: 1.4644 1.4549 1.4398

Trading range: 1.4690 – 1.4620
Trend: Downward
Sell at 1.4680 SL 1.4710 TP 1.4630

Written by