GBP/USD 1.5166 – 1 March 2010

GBP/USD Open 1.5182 High 1.5315 Low 1.5097 Close 1.5232
Pound/Dollar continues to drop convincingly, forming sharp downward channel on the 3 hour chart. After correcting up to 1.5316 on Friday, depreciation went on down to 1.5161, closing the week at 1.5232. Today at 9:30 GMT are the CIPS manufacturing index, M4 money supply and Consumer credit. As the downtrend remains strong, our expectations are for the bearish scenario to continue. Break bellow the nearest support and today’s bottom at 1.5097 should confirm the bears’ domination and may trigger further descending impulse towards the psychological 1.5000. Quotes are currently moving bellow the 50 and above the 20 EMA on the 1 hour chart, indicating bearish pressure. The value of RSI, MACD and CCI indicators are all negative and quiet on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.5315 1.5420 1.5573
Technical support levels: 1.5097 1.5000 1.4887

Trading range: 1.5180 – 1.5105
Trend: Downward
Sell at 1.5166 SL 1.5196 TP 1.5116

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