GBP/USD Technical Analysis 4 February 2009
After the significant upward correction over the last week, yesterday, Pound/Dollar stopped rising. The currency couple hit the 1.4165 bottom, made a peak at 1.4480, and closed at 1.4455. Later in the day the Cable had a very volatile market, forming a widening formation which is seen on the 1 hour chart, doing new peaks and bottoms with no clear direction. Currently the Sterling is in a consolidation, and now is maybe better to wait for a clearer trend direction. At this stage we should pay attention to the key psychological level at 1.4050. Break below this level will cause further weakening of the GBP/USD. The CCI indicator is in the neutral zone of the daily chart.
Technical resistance levels: 1.4500 1.4610 1.4725
Technical support levels: 1.4165 1.4050 1.3890
Trading range: 1.4425 - 1.4350
Trend: Downward
Sell at 1.4412 SL 1.4442 TP 1.4362
Today we made already +48 pips profit on GBP/USD from the following signal:
5:50 GMT Buy GBP/USD at 1.4417 SL 1.4391 TP 1.4477 exited at 6:39 GMT
Today so far +162, yesterday +107, as shown at www.zifx.com/performance.php