GBP/USD 1.6227 – 9 December 2009

GBP/USD Open 1.6246 High 1.6476 Low 1.6167 Close 1.6284.
Pound/Dollar extended its bearish movement on Tuesday, forming divergence on the daily chart. As seen in the 3 hour chart, after 2 higher and 2 lower tops, bulls have proven to be weak, and gave up to the strong bears, sustaining convincing defeat. That led quotes moving further downwards, which dropped down to 1.6231 yesterday, where the bearish pressure was limited, closing the day at 1.6284. Short term expectations are bearish with nearest support and first objective at 1.6160, followed by 1.6045. First resistance is 1.6307, followed by yesterday’s top 1.6476. The CCI indicator is negative on the 1 hour chart, but heading upwards, suggesting bullish pressure.
Technical resistance levels: 1.6307 1.6476 1.6666
Technical support levels: 1.6160 1.6045 1.5952

Trading range: 1.6215 – 1.6290
Trend: Upward
Buy at 1.6227 SL 1.6197 TP 1.6277


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