GBP/USD 1.6262 – 26 January 2010

GBP/USD Open 1.6244 High 1.6268 Low 1.6093 Close 1.6242
Pound/Dollar rose on Monday in anticipation of strong UK GDP data, due today at 9:30 GMT. The Cable climbed to 1.6260, closing the day at 1.6242. This morning the Sterling reached the 1.6268 resistance at the 200 EMA level, from where it bounced downwards. Till the time of the above economic event we may expect movements with unclear direction. Our expectations are for the downward trend to continue, but in case of stronger than expected figures, next resistance at 1.6388 may be tested, from where the downward movement could resume towards the main objective 1.6000. Only a significant break above 1.6388 may seriously threaten the bearish perspective. Currently the British currency is holding above the 50 EMA, indicating accumulated upward pressure, but is still below the 20 EMA, which signals for possible further strengthening of the Dollar. MACD, RSI and CCI are all neutral and leaning downwards, signaling for potential weakening of the Pound.
Technical resistance levels: 1.6268 1.6388 1.6500
Technical support levels: 1.6093 1.6000 1.5885

Trading range: 1.6275 – 1.6200
Trend: Downward
Sell at 1.6262 SL 1.6292 TP 1.6212

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