GBP/USD 1.6343 - 12 May 2011

GBP/USD Open 1.6364 High 1.6518 Low 1.6300 Close 1.6343

On Wednesday Pound/Dollar jumped on the good economic data at 8:30 GMT, but later lost all the gains, dropping with almost 200 pips, in line with the neutral Interbank sentiment at almost +2%. After the morning climb The Cable depreciated from 1.6518 to 1.6320 yesterday, closing the day at 1.6343. Today the British Pound weakened even further, descending down to 1.6300. On the 1 hour chart the downward channel has slowed down, while on the 3 hour chart the upward channel was broken downwards. First resistance is yesterday's peak at 1.6518. Break above it should extend the bullish movement further towards the 1.6635. The nearest support is today's bottom and psychological level at 1.6300. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.6179. Today are UK Industrial production and Manufacturing output, both at 8:30 GMT. Quotes are moving bellow the even 20 and 50 EMA on the 1 hour chart, indicating bearish market. The value of the RSI indicator is neutral and inclining upwards, MACD is thinly negative and quiet, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.6518 1.6635 1.6750
Technical support levels: 1.6300 1.6179 1.6050

Trading range: 1.6355 - 1.6280
Trend: Downward
Sell at 1.6343 SL 1.6373 TP 1.6293

Already made +60 pips profit on GBP/USD today from the following signal:
5:29 GMT+1 Sell GBP/USD at 1.6379 SL 1.6405 TP 1.6319, TP reached at 7:51 GMT+1.
Today so far +160, yesterday +93, as shown in details at