GBP/USD 1.4914 – 1 July 2010

GBP/USD Open 1.4943 High 1.5073 Low 1.5018 Close 1.4940

On Wednesday Pound/Dollar decreasing resumed, not exactly matching the weak negative Interbank sentiment at only around -1%. The Cable depreciated from 1.5073 to 1.4933 yesterday, closing the day at 1.4940. Today the pair is making further descending efforts. On the 1 and 3 hour charts the lower limit of the upward channel is currently being tested. First and strong resistance is yesterday’s top at 1.5073. Break above it should extend the bullish movement further towards 1.5200. The nearest support is today’s bottom at 1.4887. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4762. Today is the UK CIPS manufacturing index 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 calm, MACD is negative and quiet, while CCI has convincingly crossed down the 100 line on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.5073 1.5200 1.5331
Technical support levels: 1.4887 1.4762 1.4650

Trading range: 1.4925 – 1.4850
Trend: Downward
Sell at 1.4914 SL 1.4944 TP 1.4864

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