GBP/USD 1.5660 – 16 February 2010

GBP/USD Open 1.5660 High 1.5737 Low 1.5562 Close 1.5658
After slight decrease on Monday, Pound/Dollar showed strength and started climbing from the 1.5614 bottom, towards Friday’s top and nearest resistance 1.5737. If that level is successfully penetrated upwards, the Cable may continue recovering towards next objective 1.5850. On the 3 hour chart downward pressure on Sterling remains high, while on the 30 minute chart movements are hesitant and within the 1.5543 – 1.5749 range. We expect break out of that range to give us clearer picture. Break bellow 1.5543 will return the Sterling back on the descending track with objectives towards 1.5456, while climb above 1.5749 may lead to further appreciation of the British currency towards 1.5850. Quotes are currently moving above the 20 and 50 EMA on the 1 hour chart, suggesting bullish pressure. The value of RSI indicator is rising, while CCI and MACD are positive and leaning upwards on the 1 hour chart, giving overall long signals.
Technical resistance levels: 1.5737 1.5850 1.5949
Technical support levels: 1.5562 1.5456 1.5334

Trading range: 1.5680 – 1.5750
Trend: Upward
Buy at 1.5690 SL 1.5660 TP 1.5740

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