GBP/USD 1.5946 - 28 December 2009
In December Pound/Dollar consolidated, forming convergence. Last week the Cable undertook continued descending, but the key support at 1.5924 could not be overcome and the British currency corrected upwards. On the weekly chart the Sterling formed divergence, and then tried to drop. On the daily chart the currency couple continued consolidation within a wide range, the upper limit of which is located in the region of 1.6979. While consolidation over 1.6798 is not stable, the risk of decline of the British currency is maintained. Strengthening under 1.5924 will signal for reduction. Holding above 1.6021 may provoke an increase with objectives towards 1.6164. A Bank Holiday is today in UK, therefore we do not expect big movements. The CCI indicator is neutral and leaning upwards on the 1 hour chart, suggesting slight bullish pressure.
Technical resistance levels: 1.6021 1.6164 1.6235
Technical support levels: 1.5924 1.5825 1.5733
Already made +10 pips profit on GBP/USD today from the following signal:
5:35 GMT Buy GBP/USD at 1.5964 SL 1.5938 TP 1.6024 exited at 8:08 GMT
Today so far +44, last Wednesday +87, as shown in details at www.zifx.com/performance.php.