GBP/USD Technical Analysis 5 November 2010

GBP/USD Open 1.6269 High 1.6300 Low 1.6088 Close 1.6270
On Thursday Pound/Dollar increased significantly with over 210 pips, in line with the positive Interbank sentiment at nearly +8%. The Cable appreciated from 1.6088 to 1.6300 yesterday, closing the day at 1.6270. Today the British Pound is slightly adjusting. On the 1 hour chart new upward channel is formed, while on the 3 hour chart the upward channel has resumed. First resistance is yesterday's peak at 1.6300. Break above it should extend the bullish movement further towards the psychological 1.6427. The nearest support is yesterday's bottom at 1.6088. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.5960. Today are the UK Halifax house price index and PPI Output, at 8 and 9:30 GMT. Quotes are moving bellow the 20 and just above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term slim bullish pressure. The value of the RSI indicator is negative and declining, MACD is neutral and declining, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.6300 1.6427 1.6560
Technical support levels: 1.6088 1.5960 1.5837
Trading range: 1.6230 - 1.6155
Trend: Downward
Sell at 1.6217 SL 1.6247 TP 1.6167
Already made +23 pips profit on GBP/USD today from the following sent to clients only signal:
7:25 GMT Sell GBP/USD at 1.6206 SL 1.6232 TP 1.6146, exit sent at 7:56 GMT.
Today so far +117, yesterday +198, as shown in details at our web site.