GBP/USD

Tue, Feb 9 2010, 06:46 GMT
by Carol Harmer

GBP/USD

Cable had a narrow range yesterday holding both support and resistance levels. There has been little change overnight thus leaving the outlook unchanged for this session.

Now as stated there is support at 1.5560. A break through here leads us lower for 1.5535/25 initially. You want to cover shorts to here. Re-sell a break of 1.5525 as a break of this support takes the market lower for 1.5450/15.

Now the daily charts do show oversold, and this shall help buoy prices this session, especially as we have bounced of 1.5535 quite nicely. 1.5660/85 should be the resistance band this will head for this morning.

This resistance is quite good, and sellers are likely to be waiting on these higher levels. Buyers would thus be expected to cover positions to here. Only if we can slip past sellers and break 1.5709 would any immediate downside pressure be erased, leaving 1.5790 then exposed in the short term.

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Published On Tue, Feb 9 2010, 06:50 GMT

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