GBP/USD 1.5172 – 6 May 2010

GBP/USD Open 1.5095 High 1.5173 Low 1.5092 Close 1.5089
Pound/Dollar continued depreciating on Wednesday, in line with the negative Interbank sentiment at around -2%. The Cable depreciated yesterday from 1.5173 to 1.5073, closing the day at 1.5089. Today Sterling’s weakening continued. First resistance is yesterday’s top at 1.5173. Break above it should extend the bullish movement further towards 1.5264. The nearest support is today’s bottom at 1.5030. Going bellow it should extend British Pound’s weakening further down towards next downward target 1.4936. Today’s focus is on UK CIPS services index and BoE meeting announcement at 8:30 and 11 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI is negative and calm, MACD is negative and declining, while CCI is in the oversold zone on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.5173 1.5264 1.5334
Technical support levels: 1.5030 1.4936 1.4800

Trading range: 1.5185 – 1.5110
Trend: Downward
Sell at 1.5172 SL 1.5202 TP 1.5122

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