GBP/USD 1.4367 – 19 May 2010

GBP/USD Open 1.4295 High 1.4509 Low 1.4237 Close 1.4332
After some hesitant movements, Pound/Dollar continued decreasing on Tuesday, in line with the negative Interbank sentiment at nearly -68%. The Cable depreciated yesterday from 1.4509 to 1.4275, closing the day at 1.4332. Today Sterling has recorded partial correction, and weakening is expected to continue. First resistance is yesterday’s top at 1.4509. Break above it should extend the bullish movement further towards 1.4641. The nearest support is today’s bottom at 1.4237. Going bellow it should extend British Pound’s reduction further down towards next downward target 1.4135. Today is the UK BoE meeting at 8:30 GMT. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is positive and inclining upwards, MACD is negative and pointing upwards, while CCI is about to cross up the 100 line on the 1 hour chart, giving over light long signals.

Technical resistance levels: 1.4509 1.4641 1.4781
Technical support levels: 1.4237 1.4135 1.4000

Trading range: 1.4380 – 1.4305
Trend: Downward
Sell at 1.4367 SL 1.4397 TP 1.4317

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