GBP/USD 1.6462 – 4 November 2009

On Tuesday Pound/Dollar made indecisive movements, dropping first as expected down to the 1.6270 bottom, from where it climbed up to the 1.6445 top, closing the day at 1.6433. On the 3 hour chart the upper limit of the downward channel at 1.6678 is a key resistance, limiting the upward movements for now, while the lower border of the channel at 1.5754 is an important support, holding the Cable in the channel for now. Break up of the channel may threaten the downward scenario and lead to Sterling recovery. The upcoming important fundamental events this week may show the path the British currency will walk in the coming days. The nearest resistance is today’s top at 1.6500. Immediate support is at 1.6270. The CCI indicator had crossed up the 100 line on the 1 hour chart, suggesting bullish perspectives.
Technical resistance levels: 1.6500 1.6630 1.6755
Technical support levels: 1.6270 1.6150 1.6000