GBP/USD 1.5786 - 13 October 2009

GBP/USD Open 1.5802 High 1.5878 Low 1.5738 Close 1.5796

On Monday Pound/Dollar made a significant bearish movement. On the 3 hour chart there is a hedging formation, indicating continuation of the bearish trend. After the consolidation and some insignificant upward correction, the Cable broke the support line at 1.5800, pointing for a descending scenario. Our expectations are for bearish outlook with targets towards the important 1.5600 support. Break under that level may trigger stronger decreasing momentum towards 1.5565, and maybe even 1.5430. The nearest resistance is 1.5880. Penetration of that zone may strengthen the British and lead to partial recovery with possible test of the key 1.6000 resistance. The CCI indicator has crossed down the 100 line on the 1 hour chart, suggesting downward pressure.

Technical resistance levels: 1.5880 1.6000 1.6135

Technical support levels: 1.5740 1.5600 1.5565

Trading range: 1.5800 - 1.5725

Trend: Downward

Sell at 1.5786 SL 1.5816 TP 1.5736

Already made +18 pips profit on GBP/USD today from the following signal:

5:35 GMT+1 Buy GBP/USD at 1.5779 SL 1.5753 TP 1.5839 exited at 6:55 GMT

Today so far +69, yesterday +172, as shown at