GBP/USD 1.5035 – 23 March 2010

GBP/USD Open 1.5108 High 1.5111 Low 1.4931 Close 1.5106
Pound/Dollar got a little bounce on Monday, as investors’ eyes are on Wednesday’s budget data, in converse with the positive Interbank sentiment at -28%. The Cable decreased yesterday to 1.4931, than climbed up to 1.5111, closing the day at 1.5106. On the 3 hour chart Sterling is still trading neutrally within range. The nearest resistance is Monday’s top at 1.5111. Break above it may shake the short term bearish outlook, and could strengthen the British currency further towards 1.5256. First support is yesterday’s bottom at 1.4931. Going bellow it should confirm continuation of the bearish trend towards next target 1.4823. Today’s focus is on UK HICP and Retail prices at 9:30. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of RSI and CCI indicators are negative and declining, while MACD is neutral and declining on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.5111 1.5256 1.5375
Technical support levels: 1.4931 1.4823 1.4700

Trading range: 1.5045 – 1.4975
Trend: Downward
Sell at 1.5035 SL 1.5065 TP 1.4985

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