GBP/USD 1.6246 – 22 January 2010

GBP/USD Open 1.6197 High 1.6392 Low 1.6200 Close 1.6195
Pound/Dollar decreased on Thursday, as expected, from the 1.6312 top down to the 1.6125 bottom, closing the day at 1.6195. This morning, however, the Cable recovered almost all losses from yesterday, after US president Obama’s proposal for financial institutions trades’ restrictions caused Dollar weakening all over the board. Only strong movement bellow yesterday’s bottom may renew Dollar’s rising, which for now, remains doubtful. The Sterling is currently sliding above the 20 and 50 EMAs, and if we see a convincing movement above the immediate 1.6312 resistance, climbing may continue towards next objective 1.6400. The rising MACD, RSI and CCI indicators signal for a upwards pressure, while Stochastic being in the overbought zone suggests possible bearish pressure. Overall, the technical indicators bring mixed signals, with upside incline.
Technical resistance levels: 1.6311 1.6392 1.6500
Technical support levels: 1.6200 1.6198 1.6085

Trading range: 1.6235 – 1.6310
Trend: Upward
Buy at 1.6246 SL 1.6216 TP 1.6296

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