GBP/USD 1.5202 – 8 July 2010

GBP/USD Open 1.5174 High 1.5241 Low 1.5081 Close 1.5186

On Wednesday Pound/Dollar resumed rising after recording an insignificant correction, not exactly, however, matching the small Interbank sentiment at nearly +0.05%. The Cable appreciated from 1.5081 to 1.5217 yesterday, closing the day at 1.5186. Today the pair is making further recovery efforts, reaching a new height at 1.5241. On the 1 and 3 hour charts the upward channel is renewed after successfully bouncing up from the lower limit of the channel. First resistance is today’s top at 1.5241. Break above it should extend the bullish movement further towards 1.5331. The nearest support is yesterday’s bottom at 1.5081. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.4998. Today are the UK Industrial production and Manufacturing output, both at 8:30 GMT. Quotes are moving just bellow the the 20 and above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term bullish pressure. The value of the RSI indicator is positive and tranquil, MACD is positive and calm, while CCI has crossed up the 100 line on the 1 hour chart, giving overall long signals.

Technical resistance levels: 1.5241 1.5331 1.5450
Technical support levels: 1.5081 1.4998 1.4900

Trading range: 1.5215 – 1.5140
Trend: Downward
Sell at 1.5202 SL 1.5232 TP 1.5152

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