GBP/USD 1.4356 – 21 May 2010

GBP/USD Open 1.4336 High 1.4458 Low 1.4243 Close 1.4356
After a slight descend at the beginning of this week, Pound/Dollar was held within a wide trading range, in converse with the negative Interbank sentiment at around -68%. The Cable is currently trading within the 1.4242 to 1.4509, closing yesterday at 1.4356. Today Sterling seems to be pushing upwards, but without strong momentum so far. First resistance is yesterday’s top at 1.4458. Break above it should extend the bullish movement further towards 1.4600. The nearest support is yesterday’s bottom at 1.4243. Going bellow it should extend British Pound’s reduction further down towards next downward target 1.4135. Today are the UK M4 money supply, PSNCR, and PSNB at 8:30 GMT. Quotes are moving just above the 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The values of the RSI and MACD indicators are positive and declining, while CCI is about to cross down the 100 line on the 1 hour chart, giving over light long signals.

Technical resistance levels: 1.4458 1.4600 1.4725
Technical support levels: 1.4243 1.4135 1.4000

Trading range: 1.4410 – 1.4340
Trend: Downward
Sell at 1.4400 SL 1.4430 TP 1.4350

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