GBP/USD Technical Analysis 7 April 2011

GBP/USD 1.6325 - 7 April 2011

GBP/USD Open 1.6320 High 1.6364 Low 1.6256 Close 1.6329

After partial continuation of the upward trend, on Wednesday Pound/Dollar corrected deeply downwards, dropping with around 110 pips, in converse with the positive Interbank sentiment at nearly +38%. The Cable depreciated from 1.6364 to 1.6256 yesterday, closing the day at 1.6329. Today the British Pound is losing some ground again, but it's moving within yesterday's range for the time being. On the 1 hour chart trading is at the upper side of the range, while on the 3 hour chart quotes are also testing the upper limit of the wide range. First resistance is yesterday's peak at 1.6364. Break above it should extend the bullish movement further towards the 1.6475. The nearest support is yesterday's bottom at 1.6256. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.6122, before the psychological 1.6000. Today is UK Halifax house price, at 7 GMT. Quotes are moving in line with the 20 and above the 50 EMA on the 1 hour chart, indicating short term neutral and medium term bullish pressure. The value of the RSI indicator is negative and inclining upwards, MACD is positive and quiet, while CCI has just crossed up the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.6364 1.6475 1.6600
Technical support levels: 1.6256 1.6122 1.6000

Trading range: 1.6335 - 1.6265
Trend: Downward
Sell at 1.6325 SL 1.6355 TP 1.6275

Already made +25 pips profit on GBP/USD today from the following signal:
7:48 GMT+1 Sell GBP/USD at 1.6307 SL 1.6333 TP 1.6247, exit sent at 7:54 GMT+1.
Today so far +94, yesterday +141, as shown in details at http://www.zifx.com/performance.php.

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