GBP/USD 1.6231 – 28 January 2010

GBP/USD Open 1.6175 High 1.6276 Low 1.6100 Close 1.6168
The Cable managed to hold its gains on Wednesday despite the strong Dollar against other currencies. Pound/Dollar climbed to the 1.6240 top, forming new resistance level there, and closing the day at 1.6168 after some hesitant movements. Rising of Sterling continued today, not unexpected, setting a new height at 1.6276. Break above that level may strengthen the British currency further, with next objectives towards 1.6385. If around that area bulls run out of steam, we may see another depreciation towards the nearest support and bottom from Tuesday 1.6100. Any decline below that level may give the GBP/USD stronger bearish momentum towards next downward target 1.5908. Quotes currently remained above the 20 and 50 EMA, indicating for possible bulls’ domination. Rising MACD and CCI give bullish signals, while the RSI indicator is in the overbought zone, signaling for exhausted bulls. Technical indicators, overall, give ascending signals for the time being.
Technical resistance levels: 1.6276 1.6385 1.6500
Technical support levels: 1.6100 1.5908 1.5817

Trading range: 1.6220 – 1.6295
Trend: Upward
Buy at 1.6231 SL 1.6201 TP 1.6281

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