GBP/USD 1.6490 - 24 August 2009

GBP/USD Open 1.6511 High 1.6611 Low 1.6420 Close 1.6506

On Friday the Pound could not benefit from the weakening of the Dollar. This is not surprising since the market was disappointed by the BOE decision to maintain program for quantitative reductions expansion up to 200 bln Pounds. In addition to the divergence on the 1 hour chart, the Sterling is caught in a consolidation triangle. Signals are bearish in the short and neutral in the medium term. If we see more optimism for economy, the downward impulse could be limited, and the Cable may bounce upwards. Immediate current support is Friday's bottom at 1.6420. Break below that level could lead to downward pressure to 1.6300. The nearest resistance is 1.6610. The CCI indicator has crossed down the 100 line on the 1 hour hour chart, indicating bearish pressure.

Technical resistance levels: 1.6610 1.6710 1.6845

Technical support levels: 1.6420 1.6300 1.6175

Trading range: 1.6500 - 1.6430

Trend: Downward

Sell at 1.6490 SL 1.6520 TP 1.6440

Already made +55 pips profit on GBP/USD today from the following signal:

6:39 GMT+1 Sell GBP/USD at 1.6495 SL 1.6521 TP 1.6435 exited at 8:01 GMT

Today so far +120, on Friday +124, as shown at