GBP/USD Technical Analysis 2 May 2011

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GBP/USD 1.6690 - 2 May 2011

GBP/USD Open 1.6691 High 1.6740 Low 1.6621 Close 1.6701

On Friday Pound/Dollar increased insignificantly with around 100 pips, in line with the positive Interbank sentiment at under +1%. The Cable appreciated from 1.6621 to 1.6723 on Friday, closing the week at 1.6701. Today the British Pound is showing weakness after climbing to 1.6740, as the death of Osama Bin Laden was pronounced, but downward movements are within Friday's range for the time being. On the 1 hour chart the upward channel has slowed down, while on the 3 hour chart the new upward channel looks good. First resistance is today's peak at 1.6748. Break above it should extend the bullish movement further towards the 1.6740. The nearest support is Friday's bottom at 1.6621. Going bellow it should extend British Pound's reduction further down towards next downward objective and important support 1.6500. Today is UK May Bank Holiday. Quotes have just crossed up the almost even 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and quiet, while CCI is in line with the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.6621 1.6740 1.6871
Technical support levels: 1.6621 1.6500 1.6377

Trading range: 1.6700 - 1.6630
Trend: Downward
Sell at 1.6690 SL 1.6720 TP 1.6640

Already made +24 pips profit on GBP/USD today from the following signal:
5:30 GMT+1 Sell GBP/USD at 1.6665 SL 1.6691 TP 1.6605, exit sent at 5:35 GMT+1.
Today so far +93, on Friday +132, as shown in details at http://www.zifx.com/performance.php.

ZIFX.com

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