GBP/USD 1.4304 – 25 May 2010

GBP/USD Open 1.4407 High 1.4525 Low 1.4310 Close 1.4423
Pound/Dollar started this week with a slight decrease, in line with negative Interbank sentiment at around -55%. The Cable traded with depreciation yesterday, dropping from 1.4525 to 1.4353, closing the day at 1.4423. Today Sterling is showing further weakness, but without strong impulse so far. First resistance is yesterday’s top at 1.4525. Break above it should extend the bullish movement further towards 1.4600. The nearest support is today’s bottom at 1.4275. Going bellow it should extend British Pound’s reduction further down towards next downward target 1.4186. Today’s focus is on UK GDP Q1 at 8:30 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 negative and declining, MACD is negative and dovish, while CCI has crossed down the 100 line on the 1 hour chart, giving over short signals.

Technical resistance levels: 1.4525 1.4600 1.4725
Technical support levels: 1.4275 1.4186 1.4100

Trading range: 1.4315 – 1.4240
Trend: Downward
Sell at 1.4304 SL 1.4334 TP 1.4254

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