DAILY TECHNICAL OUTLOOK ON GBP/USD07 Jan 2014 00:45GMT
Trend Daily Chart
Up
Daily Indicators
Turning down
21 HR EMA
1.6401
55 HR EMA
1.6419
Trend Hourly Chart
Sideways
Hourly Indicators
Rising
13 HR RSI
51
14 HR DMI
+ve
Daily Analysis
Recovery b4 strg retreat
Resistance
1.6535 - 1st reaction low fm 1.6605
1.6474 - Last Fri's high
1.6434 - Y'day's NY high
Support
1.6337 - Y'day's low
1.6316 - Dec 20 low
1.6215 - Dec 17 low
. GBP/USD - 1.6409 ... The British pound penetrated last Fri's 1.6395 low
y'day in Asian morning on dlr's strength elsewhere. Cable dropped to 1.6337 in
European morning b4 rebounding strongly to 1.6434 in NY session on active short-
covering after the release of weak U.S. economic data.
. Although cable's rebound fm 1.6337 to 1.6434 signals the decline fm last
Thur's fresh 2-year peak at 1.6605 has formed a temporary low there n initial
consolidation wud be seen, as long as 1.6471/74 (50% r of 1.6605-1.6337 n last
Fri's high respectively) holds, downside bias remains for aforesaid fall to
resume n brings re-test of y'day's low at 1.6337, however, anticipated 'bullish
convergences on the hourly oscillators wud prevent steep fall fm there n reckon
1.6316/18 (being Dec 20 low n minimum 38.2% r of MT intermediate rise fm 1.5854
in Nov to 1.6605 resp.) shud contain downside n yield another rebound later.
. In view of abv analysis, selling cable on intra-day rise is favoured but
below 1.6337 needed to extend weakness to 1.6316. On the uspide, only a daily
close abv 1.6474 wud risk stronger gain to 1.6500/05 but 1.6535 shud hold.
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