DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 20 Aug 2014 00:29GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.6641
55 HR EMA
1.6674
Trend Hourly Chart
Down
Hourly Indicators
Rising fm o/s
13 HR RSI
21
14 HR DMI
-ve
Daily Analysis
Resumption of recent decline
Resistance
1.6739 - Mon's high
1.6680 - Last Fri's NY low
1.6657 - Last Thur's low (now res)
Support
1.6611 - Y'day's 4-month low
1.6584 - 1.618 ext. of 1.7001-1.6812 fm 1.6890
1.6554 - Apr 04 low
. GBP/USD - 1.6720 ...Despite Mon's brief bounce to 1.6739 in NZ following BoE Carney's hawkish comments in UK Sun Times, the British pound tumbled on Tue after the release of surprise lower-than-expected U.K. CPI data. Price easily penetrated last Thur's 1.6657 trough to a fresh 4-month low at 1.6611 in NY.
. Looking at the hourly n daily charts, y'day's selloff confirms MT down-trend fm Jul's near 6-year peak of 1.7192 resumed n a stronger retracement of the LT uptrend fm 2009 trough at 1.3500 remains in force n as long as 1.6739 res holds, downside bias remains for further weakness to next daily minor sup at 1.6551, however, as hourly oscillators wud display minor bullish convergences on next fall, suggesting downside wud be ltd to 1.6523/10 (50% r of 1.5854-1.7192 n equality proj. of 1.7192-1.6812 fm 1.6890 respectively) n risk fm there has increased for a much-needed rebound.
. In view of current bearish scenario, selling cable again on recovery in anticipation of further weakness is the way to go. On the upside, only a breach of 1.6739 res (Mon's high) wud violate recent series of lower high n lower lows fm 1.7192 top (Jul) n risk stronger retracement to 1.6780/90.
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