GBP/USD 1.6077 – 5 January 2010

GBP/USD Open 1.6115 High 1.6232 Low 1.6027 Close 1.6083
Pound/Dollar traded hesitantly with high volatility on Monday, trading within the 1.6061 – 1.6231 range, still holding within the downward channel on the 3 hour chart, although quotes moved closer to it’s upper limit yesterday. If prices manage to remain above the bearish channel, we may see possible upward turning scenario. Signals are expected to remain neutral in the short term. 1.6232 is an important resistance level at this stage. Valid break above it should confirm bullish outlook, with objectives towards 1.6325. Further decreasing movement within the downward channel, and bellow the immediate 1.6051 support and bottom from today, which has already started, may trigger further weakening of the Cable with potential test of 1.5961. The CCI indicator is negative on the 1 hour chart, suggesting descending pressure.
Technical resistance levels: 1.6232 1.6325 1.6450
Technical support levels: 1.6051 1.5961 1.5878

Trading range: 1.6090 – 1.6015
Trend: Downward
Sell at 1.6077 SL 1.6107 TP 1.6027


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