GBP/USD 1.4460 – 31 May 2010

GBP/USD Open 1.4446 High 1.4597 Low 1.4392 Close 1.4445
After partial recovery last week, on Friday Pound/Dollar traded with a decrease, in line with negative Interbank sentiment at around -47%. The Cable dropped from 1.4597 to 1.4453 on Friday, closing the week at 1.4445. Today Sterling is making further unconvincing so far recovery efforts. First resistance is Friday’s top at 1.4604. Break above it should extend the bullish movement further towards 1.4725. The nearest support is today’s bottom at 1.4392. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4250. Today is the UK Nationwide house price index at 6 GMT. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term weak bullish impulse. The value of the RSI indicator is positive and calm, MACD is negative and hesitant, while CCI is about to cross up the 100 line on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.4597 1.4725 1.4830
Technical support levels: 1.4392 1.4250 1.4133

Trading range: 1.4450 – 1.4520
Trend: Upward
Buy at 1.4460 SL 1.4430 TP 1.4510

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