GBP/USD 1.6147 – 27 January 2010

GBP/USD Open 1.6136 High 1.6268 Low 1.6093 Close 1.6142
Pound/Dollar made a sharp decreasing movement on Tuesday from the 1.6268 down to the 1.6100 bottom, closing the day at 1.6142. The 1.6093 level pays a key support role for now, but if penetrated, the downward movement may continue with possible test of 1.5994. Medium term decreasing outlook can only be confirmed if the 1.5860 support seen on the 3 hour chart is broken. But till the nearest support is holding, any upward movements should not come unexpected, as witnessed at the start of this morning’s session. But tests of the upper limit of the downward channel can only confirm its integrity as long as they are only tests. At 11:00 GMT CBI retail sales data is expected. Current prices remain under the 20 and 50 EMA, indicating for the downward pressure. RSI and CCI oscillators are declining, MACD is neutral on the 1 hour chart. Overall technical indicators support the bearish scenario of the Cable.
Technical resistance levels: 1.6268 1.6388 1.6500
Technical support levels: 1.6093 1.5994 1.5860

Trading range: 1.6160 – 1.6085
Trend: Downward
Sell at 1.6147 SL 1.6177 TP 1.6097

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