GBP/USD 1.6422 – 19 January 2010

GBP/USD Open 1.6345 High 1.6437 Low 1.6229 Close 1.6344
Pound/Dollar continued rising on Monday, reaching the key 1.6400 resistance, and closing the day at 1.6344. Cable’s appreciation continued today, overcoming the above resistance. During the European session we expect the Pound to increase further towards next objective 1.6550, where quotes may bounce back from the upper upper limit of the ascending channel. Immediate support is yesterday’s bottom at 1.6242. Going bellow that level may shake the current bullish outlook and strengthen the Dollar further towards 1.6151. The upcoming UK Retail prices and UK HICP may may give further catalysis to the Sterling at 9:30 GMT today. Till prices remain above EMA 20 and 50, we expect the bullish channel to stay intact. Stochastic, CCI and MACD indicators are positive on the 1 hour chart, supporting the bullish outlook.
Technical resistance levels: 1.6437 1.6550 1.6645
Technical support levels: 1.6242 1.6151 1.6065

Trading range: 1.6435 – 1.6360
Trend: Downward
Sell at 1.6422 SL 1.6452 TP 1.6372


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