GBP/USD 1.5275 – 20 July 2010

GBP/USD Open 1.5225 High 1.5348 Low 1.5204 Close 1.5227

After an unsuccessful upward push ups, on Monday Pound/Dollar corrected deeply downwards, in converse with the positive Interbank sentiment at nearly +16%. The Cable depreciated from 1.5348 to 1.5204 yesterday, closing the day at 1.5227. Today the pair resumed rising, but without strong impulse so far. On the 1 hour chart the upward channel is still on hold, while on the 3 hour chart Pound the upward channel is intact. First resistance is yesterday’s peak at 1.5348. Break above it should extend the bullish movement further towards 1.5439. The nearest support is yesterday’s bottom at 1.5204. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.5090. Today are the UK M4 money supply, M4 money supply, PSNCR, PSNB, and CBI industrial order books balance at 8:30 and 10 GMT respectively. Quotes are moving just above the 20 and just 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 inclining upwards, while CCI has crossed up the 100 line on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.5348 1.5439 1.5550
Technical support levels: 1.5204 1.5090 1.4967

Trading range: 1.5265 – 1.5335
Trend: Upward
Buy at 1.5275 SL 1.5245 TP 1.5325

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