GBP/USD 1.6122 – 25 January 2010

GBP/USD Open 1.6112 High 1.6392 Low 1.6200 Close 1.6099
Pound/Dollar rose on Friday, as expected, to the 1.6275 top, from where started declining down to the 1.6082 bottom, closing the week at 1.6099. After being subject to heavy sales last 4 days of past week, the Cable is currently expected to head further towards the nearest support and Friday’s bottom at 1.6083, but probably not without an upward correctional reaction. Our expectations are based on palliative market and the formed downward channel on the 1 hour chart, where quotes manage to hold bellow the upper limits for the last trading days. Sterling is currently moving just bellow the 50 and above the 20 EMA, which confirms the possibility for insignificant rise towards the upper limit of the descending channel at 1.6170. In case of climb completion at the above level, new bearish momentum for the Pound may follow, with objectives towards 1.5995. MACD values are above the zero line, giving rising signals. RSI and CCI indicators increase, signaling a upward pressure. Overall technical indicators give bullish signals.
Technical resistance levels: 1.6311 1.6392 1.6500
Technical support levels: 1.6200 1.6198 1.6085

Trading range: 1.6110 – 1.6185
Trend: Upward
Buy at 1.6122 SL 1.6092 TP 1.6172

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