GBP/USD 1.5289 – 21 July 2010

GBP/USD Open 1.5284 High 1.5307 Low 1.5153 Close 1.5268

After another unsuccessful upward push up, on Tuesday Pound/Dollar corrected deeply downwards, in converse with the positive Interbank sentiment at nearly +16%. The Cable depreciated from 1.5307 to 1.5153 yesterday, than climbed again, closing the day at 1.5268. Today the pair is trading hesitantly so far. On the 1 hour chart the upward channel was widened, while on the 3 hour chart Pound the upward channel is intact. First resistance is yesterday’s peak at 1.5307. Break above it should extend the bullish movement further towards 1.5439. The nearest support is yesterday’s bottom at 1.5153. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.5040. Today is the UK BoE meeting minutes at 8:30 GMT. Quotes are moving above the 20 and just bellow the 50 EMA on the 1 hour chart, indicating bullish pressure. The value of the RSI indicator is negative and inclining upwards, MACD is positive and calm, while CCI has crossed up the 100 line on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.5307 1.5439 1.5550
Technical support levels: 1.5153 1.5040 1.4936

Trading range: 1.5275 – 1.5350
Trend: Upward
Buy at 1.5289 SL 1.5259 TP 1.5339

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