GBP/USD 1.4518 – 28 May 2010

GBP/USD Open 1.4551 High 1.4604 Low 1.4371 Close 1.4580
After being hesitant last week, this week Pound/Dollar finally started showing signs of recovery, and on Thursday traded with increase, in converse with negative Interbank sentiment at nearly -59%. The Cable rose from 1.4371 to 1.4604 yesterday, closing the day at 1.4580. Today Sterling is making further unconvincing so far recovery efforts. First resistance is yesterday’s top at 1.4604. Break above it should extend the bullish movement further towards 1.4725. The nearest support is yesterday’s bottom at 1.4371. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4250. There are no major economic events for UK today. Quotes are moving bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term bearish impulse. The value of the RSI indicator is negative and declining, MACD is positive and turning down, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.4604 1.4725 1.4830
Technical support levels: 1.4371 1.4250 1.4133

Trading range: 1.4530 – 1.4455
Trend: Downward
Sell at 1.4518 SL 1.4548 TP 1.4468

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