GBP/USD 1.6248 – 15 December 2009

GBP/USD Open 1.6309 High 1.6320 Low 1.6189 Close 1.6311
Pound/Dollar traded hesitantly on Monday within the 1.6189 – 1.6320 range, forming divergence on the the daily chart, which indicates consolidation phase for the Cable. Signals are neutral in the short term and expected to be bearish for the intraday trading. On the 3 hour chart the formed a triangle was broken downwards, indicating further technical bearish pressure towards the 1.6110 objective. The nearest resistance is yesterday’s top at 1.6320, followed by 1.6476. We expect only a convincing break above 1.6476 to be seen as a potential threat to downward perspectives. While the Sterling remains bellow it, our preferable scenario will be in favour of the bears for now. The CCI indicator is about to cross down the 100 line on the 1 hour chart, suggesting downward impulse.
Technical resistance levels: 1.6320 1.6476 1.6666
Technical support levels: 1.6189 1.6110 1.6025

Trading range: 1.6235 – 1.6310
Trend: Upward
Buy at 1.6248 SL 1.6218 TP 1.6298


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