Great British Pound (GBP) Technical Major Currencies (2010-08-31)

The pair headed to the downside according to yesterday's expectations after stabilizing against pivotal resistance 1.5555, as the pair currently nears support for the bearish channel that controls intraday trading at 1.5400. We may witness some fluctuation due to the positive effect of the stochastic, but in overall we expect a bearish intraday that descend requires the suggested clear breach of 1.5400 to pave the way towards key targets that start at 1.5280 then 1.5160. It is vital that the daily closing is below 1.5555 to maintain chances of these expectations prevailing.

The trading range for today is among the key support at 1.5235 and the key resistance at 1.5555.

The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.

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Weekly Report

Support1.54001.53601.53101.52801.5235Resistance1.54951.55551.56001.56501.5710RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.5400 targeting 1.5280 and stop loss above 1.5495, might be appropriate.