GBP/USD 1.5911 – 30 December 2009

GBP/USD Open 1.5891 High 1.6068 Low 1.5878 Close 1.5902
Pound/Dollar showed a strong increasing momentum on Tuesday, reaching a peak at 1.6068, from where the Sterling collapsed down to the 1.5878 bottom, closing the day at 1.5902. On the 3 hour chart the Cable is still in a consolidation phase, indicating trading within triangular formation. Essentially movements are still indecisive, and the longer quotes remain below 1.6000, our preferably scenario would be downwards. Break above the nearest resistance and yesterday’s top at 1.6068 may trigger further bullish impulse with possible test of the upper limit of the bearish channel at 1.6164, and can bring serious threat to the bearish perspectives. The nearest and strong support is 1.5878, and break bellow it might trigger stronger downward impetus with objectives towards 1.5785. The CCI indicator is neutral and leaning upwards on the 1 hour chart, so be careful for insignificant ascending pressure.
Technical resistance levels: 1.6068 1.6164 1.6235
Technical support levels: 1.5878 1.5785 1.5663

Trading range: 1.5925 – 1.5850
Trend: Downward
Sell at 1.5911 SL 1.5941 TP 1.5861


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