GBP/USD 1.4745 – 7 May 2010

GBP/USD Open 1.4871 High 1.5146 Low 1.4595 Close 1.4839
Pound/Dollar continued depreciating on Thursday, in line with the negative Interbank sentiment at around -2%. The Cable depreciated yesterday from 1.5146 to 1.4721, closing the day at 1.4839. Today Sterling’s descending continued. First resistance is yesterday’s top at 1.5146. Break above it should extend the bullish movement further towards 1.5264. The nearest support is today’s bottom at 1.4595. Going bellow it should extend British Pound’s weakening further down towards next downward target 1.4481. Today’s focus is on UK PPI Output and Input at 8:30 and 11 GMT. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is positive and inclining upwards, MACD is negative and declining, while CCI is negative and quiet on the 1 hour chart, giving overall light short signals.

Technical resistance levels: 1.5146 1.5264 1.5334
Technical support levels: 1.4595 1.4481 1.4350

Trading range: 1.4755 – 1.4685
Trend: Downward
Sell at 1.4745 SL 1.4775 TP 1.4695

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