GBP/USD 1.4960 – 12 May 2010

GBP/USD Open 1.4924 High 1.4998 Low 1.4722 Close 1.4950
Pound/Dollar traded hesitantly and with a slight increase on Tuesday, in converse with the negative Interbank sentiment at around -56%. The Cable appreciated yesterday from 1.4722 to 1.4998, than started declining, closing the day at 1.4950. Today the Sterling is making further recovery efforts. First resistance is yesterday’s top at 1.4998. Break above it should extend the bullish movement further towards 1.5146. The nearest support is yesterday’s bottom at 1.4722. Going bellow it should extend British Pound’s weakening further down towards next downward target 1.4512. Today is the UK Claimant count, Average earnings, ILO Jobless rate, and BoE quarterly inflation report at 8:30 and 9:30 GMT respectively. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The value of the RSI indicator is negative and inclining upwards, while MACD and CCI are neutral and dovish on the 1 hour chart, giving overall light bullish signals.

Technical resistance levels: 1.4998 1.5146 1.5270
Technical support levels: 1.4722 1.4512 1.4400

Trading range: 1.4950 – 1.5030
Trend: Upward
Buy at 1.4960 SL 1.4930 TP 1.5020

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