FX.co ★ GBP/USD, Upward Movement is expected, December 21, 2010 (Daily Strategy)

GBP/USD

The current wave of downwards movements in the British pound – United States dollar pair had cleaned out the range of stop-loss orders that had been poised under the previous low around 1.5480, thus drying out the selling power left around these levels. The way is now open for a new wave of upwards movement that is expected to push the pair towards the last highs around 1.5800.

It would be well to note the strong positive deviation from the MACD indicators, supporting the bullish predictions on the pair. Despite that, to avoid a false buy signal, a buy deal may be made conditional around the weekly support level of 1.5340. The exit goal should be placed relative to the resistance level of 1.5800 GBP/USD.