GBP/USD 1.6098 – 22 December 2009

GBP/USD Open 1.6055 High 1.6164 Low 1.6029 Close 1.6031
Pound/Dollar made hesitant movements on Monday, also forming divergence on the daily chart. The Cable climbed to the 1.6164 top, from where it dropped down to 1.6029, closing the day at 1.6031. We expect the descending scenario to remain intact, but any upward correction should not come unexpected, after a week of continuous weakening. The 1.6029 level appears as a strong support, and only convincing break bellow it would confirm the continuation of the bears’ domination, with targets towards 1.5914. Stronger downward impulse might weaken the Sterling further, with 1.5800 as a potential downward objective in the long run. The nearest resistance is yesterday’s top at 1.6164, followed by 1.6235. The CCI indicator is positive on the 1 hour chart, suggesting bullish correctional movements.
Technical resistance levels: 1.6164 1.6235 1.6398
Technical support levels: 1.6029 1.5914 1.5825

Trading range: 1.6110 – 1.6035
Trend: Downward
Sell at 1.6098 SL 1.6128 TP 1.6048


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