GBP/USD 1.5651 – 11 February 2010

GBP/USD Open 1.5610 High 1.5765 Low 1.5572 Close 1.5593
Pound/Dollar recovered this morning partly the losses from yesterday, as seen on the 5 minute chart. On Wednesday the Cable rose from 1.5589 up to the 1.5765 top, influenced from the increasing risk appetite on the market, where the bullish impulse was limited, closing the day at 1.5593. There ate no economic events today for UK. On the 15 minute chart the Sterling is trading within the 1.5544 – 1.5764. We expect break out of that range to give us clearer picture for next movement direction. Persuasive break bellow Monday’s bottom at 1.5544 will return the Sterling back on the descending track with objectives towards 1.5456, while climb above 1.5765 may lead to further recovery of the British currency towards 1.5855. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, suggesting bearish perspective. The values of RSI and CCI indicators are declining, while MACD is calm and leaning downwards on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.5732 1.5855 1.5949
Technical support levels: 1.5572 1.5456 1.5334

Trading range: 1.5620 – 1.5550
Trend: Downward
Sell at 1.5610 SL 1.5640 TP 1.5560

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