GBP/USD 1.5317 – 19 July 2010

GBP/USD Open 1.5302 High 1.5439 Low 1.5269 Close 1.5295

After an unsuccessful rising efforts, on Friday Pound/Dollar corrected deeply downwards, in converse with the positive Interbank sentiment at around +20%. The Cable depreciated from 1.5439 to 1.5286 on Friday, closing the week at 1.5295. Today the pair is trading hesitantly fo now. On the 1 hour chart the upward channel is on hold, while on the 3 hour chart Pound is is testing the lower limit of the upward channel. First resistance is Friday’s peak at 1.5439. Break above it should extend the bullish movement further towards 1.5550. The nearest support is today’s bottom at 1.5269. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.5181. There are no major economic events for UK today. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish pressure, confirmed by strong last green candle. The value of the RSI indicator is positive and climbing, MACD is negative and quiet, while CCI is about to cross up the 100 line on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.5439 1.5550 1.5705
Technical support levels: 1.5269 1.5181 1.4967

Trading range: 1.5305 – 1.5380
Trend: Upward
Buy at 1.5317 SL 1.5287 TP 1.5367

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