GBP/USD 1.5946 – 28 December 2009

GBP/USD Open 1.5958 High 1.6021 Low 1.5924 Close 1.5942
In December Pound/Dollar consolidated, forming convergence. Last week the Cable undertook continued descending, but the key support at 1.5924 could not be overcome and the British currency corrected upwards. On the weekly chart the Sterling formed divergence, and then tried to drop. On the daily chart the currency couple continued consolidation within a wide range, the upper limit of which is located in the region of 1.6979. While consolidation over 1.6798 is not stable, the risk of decline of the British currency is maintained. Strengthening under 1.5924 will signal for reduction. Holding above 1.6021 may provoke an increase with objectives towards 1.6164. A Bank Holiday is today in UK, therefore we do not expect big movements. The CCI indicator is neutral and leaning upwards on the 1 hour chart, suggesting slight bullish pressure.
Technical resistance levels: 1.6021 1.6164 1.6235
Technical support levels: 1.5924 1.5825 1.5733

Trading range: 1.5935 – 1.6000
Trend: Upward
Buy at 1.5946 SL 1.5916 TP 1.5986


Written by