GBP/USD 1.5700 – 12 February 2010

GBP/USD Open 1.5699 High 1.5765 Low 1.5572 Close 1.5703
Pound/Dollar remains within the downward channel, formed on the 3 hour chart. On Thursday the Cable dropped down to 1.5562, as expected, where the bearish movement was limited, than rose to the 1.5716 top, closing the day at 1.5703. This morning the Sterling is trading with and increase, as seen on the 5 minute chart. There are no economic events today for UK, only the EU GDP at 10:00 GMT, which may weaken the Pound too if data is negative. 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 currently moving above the 20 and 50 EMA on the 1 hour chart, suggesting bullish pressure. The values of RSI and CCI indicators are declining, while MACD is calm and slightly leaning upwards on the 1 hour chart, giving overall long signals.
Technical resistance levels: 1.5765 1.5855 1.5949
Technical support levels: 1.5562 1.5456 1.5334

Trading range: 1.5690 – 1.5760
Trend: Upward
Buy at 1.5700 SL 1.5670 TP 1.5750

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