GBP/USD 1.5280 – 18 March 2010

GBP/USD Open 1.5313 High 1.5373 Low 1.5208 Close 1.5317
Pound/Dollar rose sharply on Tuesday, following the reduced unemployment numbers, in line with the positive Interbank sentiment at nearly 20%. The Cable climbed to 1.5373, closing the day at 1.5248. As 1.5373 stopped further bullish attacks, forming new resistance level, which the Sterling tested again, before pulling down. On the 3 hour chart the bearish channel has calmed and new range trading has formed on the 1 hour chart, with upward incline. Today are the M4 money supply, PSNCR at 9:30 and CBI industrial output for UK at 11:00 GMT. Break above yesterday’s peak at 1.5373 should confirm Pound’s short term bullish outlook, which could strengthen further towards next objective 1.5357. The nearest support is yesterday’s bottom at 1.5208. Going bellow it may put Sterling back on the bearish track. Quotes are moving bellow the 20 and just above the 50 EMA on the 1 hour chart, indicating slight bearish pressure. The value of RSI indicator is negative and inclining upwards, MACD is positive and declining, while CCI is negative and dovish, giving overall short signals.
Technical resistance levels: 1.5373 1.5454 1.5524
Technical support levels: 1.5208 1.4983 1.4871

Trading range: 1.5290 – 1.5220
Trend: Downward
Sell at 1.5280 SL 1.5310 TP 1.5230

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