GBP/USD 1.5894 – 4 February 2010

GBP/USD Open 1.5915 High 1.6060 Low 1.5869 Close 1.5892
On Wednesday Pound/Dollar climbed to 1.6060, where the bullish momentum was limited, from which point the Cable collapsed down to 1.5881, closing the day at 1.5892. That puts the currency couple back on the descending track on the 1 hour chart and our current expectations supports that scenario. Today declining of the currency continued towards the nearest support and bottom from Monday at 1.5869. If that level convincingly broken down, the bearish impulse is expected to continue, with next objectives towards 1.5743. The nearest resistance is yesterday’s top at 1.6060. Upward penetration of that level may seriously shake the integrity of the descending channel and strengthen the Sterling further, with possible test of 1.6175. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish outlook. The values of RSI indicator are neutral, MACD is negative and quiet, and CCI is negative and declining, signaling for further insignificant depreciation of the British currency.
Technical resistance levels: 1.6060 1.6175 1.6277
Technical support levels: 1.5857 1.5743 1.5630

Trading range: 1.5905 – 1.5830
Trend: Downward
Sell at 1.5894 SL 1.5924 TP 1.5844

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