GBP/USD 1.5198 – 22 July 2010

GBP/USD Open 1.5182 High 1.5328 Low 1.5124 Close 1.5163

After some hesitation, on Wednesday Pound/Dollar sharply dropped again, in converse with the positive Interbank sentiment at nearly +13%. The Cable depreciated from 1.5328 to 1.5124 yesterday, closing the day at 1.5163. Today the pair is trading without clear direction for now. On the 1 hour chart trading is within wide range, while on the 3 hour chart quotes are testing the lower limit of the upward channel. First resistance is yesterday’s peak at 1.5328. Break above it should extend the bullish movement further towards 1.5439. The nearest support is yesterday’s bottom at 1.5124. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.5040. Today is the UK Retail sales at 8:30 GMT. Quotes are moving above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullich and medium term bearish pressure. The value of the RSI indicator is negative and inclining upwards, MACD is negative and calm, while CCI is about to cross up the 100 line on the 1 hour chart, giving overall mixed signals.

Technical resistance levels: 1.5328 1.5439 1.5550
Technical support levels: 1.5124 1.5040 1.4936

Trading range: 1.5210 – 1.5135
Trend: Downward
Sell at 1.5198 SL 1.5228 TP 1.5148

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