GBP/USD 1.6286 – 20 January 2010

GBP/USD Open 1.6359 High 1.6437 Low 1.6229 Close 1.6360
Pound/Dollar rose on Tuesday to the 1.6443 top, from where the Bullish currency started weakening like the Euro, down to 1.6315, closing the day at 1.6360. After giving some resistance to the Dollar this morning, Sterling started giving up, and descending continued down to 1.6252. At 9:30 we have different UK economic data coming, such as Claimant count, Average earnings and BOE statement, which may bring more volatility for the Cable. In case of negative data British currency may drop further down towards 1.6144. Possible ascending impulse due to positive data might be limited by yesterday’s top. Current movements remains bellow the 20 and 50 EMA, which also gives negative signals. RSI, MACD and CCI indicators are all negative, suggesting quotes reduction.
Technical resistance levels: 1.6437 1.6550 1.6645
Technical support levels: 1.6242 1.6151 1.6065

Trading range: 1.6300 – 1.6255
Trend: Downward
Sell at 1.6286 SL 1.6316 TP 1.6236

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