GBP/USD 1.5696 – 5 February 2010

GBP/USD Open 1.5766 High 1.5918 Low 1.5650 Close 1.5752
Pound/Dollar continued descending on Thursday from 1.5918 to 1.5741, closing the day at 1.5752. On the 1 hour chart we have a very well shaped downward channel and our expectations for now are for the bearish trend to continue. Please remember that sharp movements always carry the risk of consecutive corrections. Today the Cable is testing the new 1.5650 support. If that level convincingly broken down, the bearish momentum is expected to continue, with next objectives towards 1.5540. The nearest resistance is yesterday’s top at 1.5918. Going above that level may seriously shake the integrity of the descending channel and strengthen the Sterling further, with possible test of 1.6031. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish perspective. The values of RSI and CCI indicators are negative, while MACD is slightly negative, quietly leaning downwards on the 1 hour chart, giving overall bearish signals.
Technical resistance levels: 1.5918 1.6031 1.6175
Technical support levels: 1.5650 1.5540 1.5432

Trading range: 1.5710 – 1.5635
Trend: Downward
Sell at 1.5696 SL 1.5726 TP 1.5646

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