GBP/USD 1.6029 – 3 February 2010

GBP/USD Open 1.5991 High 1.6059 Low 1.5904 Close 1.5771
Pound/Dollar has formed new small rising channel on the 15 minute chart starting from Monday’s bottom at 1.5859. After little hesitation on Wednesday, climbing continued to 1.5996, closing the day at 1.5771. Today the Cable is testing 1.6060, which appears to be a good resistance so far, but if convincingly broken, the bullish impulse may continue, with next objective 1.6175. The nearest support is yesterday’s bottom at 1.5904. Downward penetration of that level may get the Sterling back into the bearish channel, and weaken it further towards Monday’s bottom 1.5857. PMI services release any time now may bring some volatility. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating rising outlook. The values of RSI, MACD and CCI indicators are all positive and rising, signaling for possible further recovery of the British currency.
Technical resistance levels: 1.6060 1.6175 1.6277
Technical support levels: 1.5904 1.5857 1.5743

Trading range: 1.6015 – 1.6090
Trend: Upward
Buy at 1.6029 SL 1.5999 TP 1.6079

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