GBP/USD 1.5645 – 9 February 2010

GBP/USD Open 1.5569 High 1.5669 Low 1.5544 Close 1.5581
Pound/Dollar is trading hesitantly this week within the 1.5544 – 1.5669, closing yesterday at 1.5581. On the 1 hour chart the downward channel remains intact for now. The Pound, however is expected to render pressure on the Dollar, and any stronger upward corrections should not come unexpected. Break above the nearest resistance at 1.5669 may lead to further rising of the Cable with possible test of Friday’s top 1.5777. Penetration bellow the 1.5544 support would confirm the integrity of the descending channel, and the weakening of the Sterling may be extended further towards 1.5440. Quotes are crossing with the 50 and 20 EMA on the 1 hour chart, indicating main bearish perspective with current upward adjustment. The value of RSI and MACD indicator is neutral, while CCI in in the overbought zone, leaning downwards on the 1 hour chart, giving overall mixed signals.
Technical resistance levels: 1.5669 1.5777 1.5878
Technical support levels: 1.5544 1.5440 1.5334

Trading range: 1.5655 – 1.5585
Trend: Downward
Sell at 1.5645 SL 1.5675 TP 1.5595

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