GBP/USD 1.5951 – 1 February 2010

GBP/USD Open 1.5970 High 1.6173 Low 1.5924 Close 1.5981
Pound/Dollar continued decreasing on Friday, form the 1.6173 point, down to 1.5976, closing the week at 1.5981. The Cable continued to weaken today, forming new support level at 1.5900. In the medium term Sterling is trading within the 1.5860 – 1.6437 range, as seen on the 3 hour chart. Convincing break bellow the lower 1.5860 level would confirm the bearish trend and may trigger stronger downward impulse towards 1.5725. Only significant break above last week’s top 1.6276 could shake the current strong downward outlook, seen on the 15 minutes chart. Some of the economic data for UK at 9:30 GMT may support the British currency and any upwards movements should not come unexpected. Prices remain bellow the 20 and 50 EMA, signaling for weak Pound. Lowering CCI and MACD are in favour of the Dollar. RSI is in the oversold area, signalling for potential bullish correction. Overall, technical indicators support the bearish scenario.
Technical resistance levels: 1.6173 1.6276 1.6385
Technical support levels: 1.5900 1.5817 1.5725

Trading range: 1.5965 – 1.5890
Trend: Downward
Sell at 1.5951 SL 1.5981 TP 1.5901

Written by