GBP/USD 1.6233 – 17 December 2009

GBP/USD Open 1.6324 High 1.6405 Low 1.6189 Close 1.6332
Pound/Dollar did not make a significant movement on Wednesday, yet managed to snatch out of the the triangle formation on the 3 hour chart, reaching the 1.6405 top, indicating consolidation, and closing the day at 1.6332. Medium term signals remain neutral. However, our preferable scenario in the short term remains bearish. We will be looking for a convincing break bellow the nearest 1.6189 support to confirm the bears’ strength. Break above the first resistance and yesterday’s top 1.6405 should be regarded as a serious challenge to the downward outlooks and may weaken the Dollar further towards 1.6493, followed by 1.6654. The CCI indicator is negative on the 1 hour chart, suggesting downward pressure.
Technical resistance levels: 1.6405 1.6493 1.6654
Technical support levels: 1.6189 1.6110 1.6025

Trading range: 1.6245 – 1.6170
Trend: Downward
Sell at 1.6233 SL 1.6263 TP 1.6183


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