GBP/USD 1.5635 – 18 February 2010

GBP/USD Open 1.5682 High 1.5817 Low 1.5631 Close 1.5672
Pound/Dollar also lost all gains from the beginning of the week, when on Wednesday the Cable dropped from 1.5815 to 1.5665, closing the day at 1.5672. Expectation today are for the the bearish trend to continue towards next objective downwards 1.5506, if we see successful penetration of the nearest support at 1.5600, which the Sterling is currently testing. At 9:30 GMT today several economic events are expected for UK, including BOE minutes, which may bring more volatile movements. Quotes are currently moving bellow the 20 and 50 EMA on the 1 hour chart, suggesting strong bearish pressure. The value of RSI indicator is negative and dovish, while CCI and MACD are negative and declining on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.5817 1.5904 1.6000
Technical support levels: 1.5600 1.5506 1.5411

Trading range: 1.5645 – 1.5575
Trend: Downward
Sell at 1.5635 SL 1.5665 TP 1.5585

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