GBP/USD Technical Analysis 1 February 2010

Pound/Dollar continued decreasing on Friday, form the 1.6173 point, down to 1.5976, closing the week at 1.5981. The Cable continued to weaken today, forming new support level at 1.5900. In the medium term Sterling is trading within the 1.5860 - 1.6437 range, as seen on the 3 hour chart. Convincing break bellow the lower 1.5860 level would confirm the bearish trend and may trigger stronger downward impulse towards 1.5725. Only significant break above last week's top 1.6276 could shake the current strong downward outlook, seen on the 15 minutes chart. Some of the economic data for UK at 9:30 GMT may support the British currency and any upwards movements should not come unexpected. Prices remain bellow the 20 and 50 EMA, signaling for weak Pound. Lowering CCI and MACD are in favour of the Dollar. RSI is in the oversold area, signalling for potential bullish correction. Overall, technical indicators support the bearish scenario.Technical resistance levels: 1.6173 1.6276 1.6385Technical support levels: 1.5900 1.5817 1.5725

Trading range: 1.5965 - 1.5890Trend: DownwardSell at 1.5951 SL 1.5981 TP 1.5901

Already made +60 pips profit on GBP/USD today from the following signal:7:26 GMT Sell GBP/USD at 1.5973 SL 1.5999 TP 1.5913 TP reached 8:47 GMTToday so far +117, on Friday +111, as shown in details at www.zifx.com/performance.php.