DAILY TECHNICAL OUTLOOK ON GBP/USD

Last Update At

17 Jan 2013 00:17GMT

Trend Daily Chart
Sideways

Daily Indicators
Turning down

21 HR EMA
1.6013

55 HR EMA
1.6141

Trend Hourly Chart
Near term down

Hourly Indicators
Rising fm o/sold

13 HR RSI
40

14 HR DMI
-ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.6102 - Tue's NY high
1.6080 - Y'day's high
1.6054 - Hourly res

Support
1.5975 - Y'day's low
1.5962 - Nov 28 low
1.5927 - Nov 27 low

GBP/USD - 1.5985 ... The pound also fluctuated wildly in tandem with euro y'day. Cable met renewed selling at 1.6080 in Asian morning n nose-dived to 1.60 03 in European morning b4 staging a brief but strg bounce to 1.6054 on short- covering. Price later tumbled to a 6-week low of 1.5975 in NY b4 recovering.

Y'day's breach of 1.5992 (Jan 09 low) to 1.5975 confirms recent decline fm Jan's 15-month high of 1.6380 to retrace MT uptrend fm 1.5270 (Jun) has once again resumed n as long as 1.6054 res holds, bearishness remains for another drop to 1.5956/62 ('minimum' 38.2% r of 1.5270-1.6380 n chart sup resp.), below wud encourage for further weakness twds 1.5927/42, being Nov 27 low n 38.2% r of 1.5234 (2012 low in Jan) to 1.6380 respectively, however, as hourly oscillators wud display 'bullish convergences' on next fall, steep decline below latter lvl is unlikely n reckon 1.5900 wud contain downside n yield rebound later.

In view of the abv analysis, selling cable on intra-day recovery in anti- cipation of further weakness is recommended. On the upside, a daily close abv res at 1.6102 wud confirm temp. low is made n risk stronger gain twd 1.6177/82.