GBP/USD 1.5580 – 8 February 2010

GBP/USD Open 1.5598 High 1.5777 Low 1.5534 Close 1.5657
Pound/Dollar continued descending on Friday from 1.5777 to 1.5570, closing the week at 1.5657. On the 1 hour chart we have a very well shaped downward channel. Be aware that sharp movements always carry the risk of consecutive corrections. Today the Cable tested the new 1.5534 support, from where it bounced up, climbing to 1.5626. If the support convincingly broken down, the bearish momentum is expected to continue, with next objectives towards 1.5440. The nearest resistance is Friday’s top at 1.5777. Penetration above that level may seriously shake the integrity of the descending channel and strengthen the Sterling further, with possible test of 1.5878. Quotes are moving bellow the 50 and may cross up the 20 EMA on the 1 hour chart, indicating main bearish perspective with current upward adjustment. The values of RSI and CCI indicators are positive, while MACD is neutral, slightly leaning upwards on the 1 hour chart, giving overall bullish signals.
Technical resistance levels: 1.5777 1.5878 1.6057
Technical support levels: 1.5534 1.5440 1.5334

Trading range: 1.5570 – 1.5640
Trend: Upward
Buy at 1.5580 SL 1.5550 TP 1.5630

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