GBP/USD 1.5945 – 2 February 2010

GBP/USD Open 1.5948 High 1.5980 Low 1.5853 Close 1.5955
Pound/Dollar traded downwards on Monday, from the 1.5980 top, down to the 1.5853 bottom, closing the day at 1.5955. The 1.5853 bottom and support is still holding the bearish attacks, and only persuasive break bellow it would confirm the short term downwards scenario. On the 1 hour chart the Cable is moving within a newly formed downward channel, which started on 19 January. Only a significant climb above its upper limit and nearest resistance at 1.5980 may shake the bearish perspective and lead to further recovery of the British currency. Quotes are currently moving bellow the 20 and 50 EMA, which signals for bearish movement continuation for now. RSI and CCI indicators confirm decreasing scenario, while MACD is just under zero, but also supporting the Dollar. Generally, indicators signal for descending pressure.
Technical resistance levels: 1.5980 1.6069 1.6173
Technical support levels: 1.5853 1.5765 1.5644

Trading range: 1.5955 – 1.5885
Trend: Downward
Sell at 1.5945 SL 1.5975 TP 1.5895

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