GBP/USD 1.4381 – 26 May 2010

GBP/USD Open 1.4409 High 1.4448 Low 1.4310 Close 1.4406
Pound/Dollar traded with a decrease at first on Tuesday, in line with negative Interbank sentiment at around -57%, than bounced upwards. The Cable depreciated yesterday down to 1.4265, from which point a recovery occurred back up to 1.4448, closing the day at 1.4406. Today Sterling is showing further weakness, but without strong downward momentum so far. First resistance is yesterday’s top at 1.4448. Break above it should extend the bullish movement further towards 1.4600. The nearest support is yesterday’s bottom at 1.4265. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4186. There are no major economic events for UK today. 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 quiet, MACD is neutral and dovish, while CCI has crossed down the 100 line on the 1 hour chart, giving over light short signals.

Technical resistance levels: 1.4448 1.4600 1.4725
Technical support levels: 1.4265 1.4186 1.4100

Trading range: 1.4395 – 1.4320
Trend: Downward
Sell at 1.4381 SL 1.4411 TP 1.4331

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