DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 22 Sep 2014 23:59GMT
Trend Daily Chart
Down
Daily Indicators
Turning up
21 HR EMA
1.6351
55 HR EMA
1.6347
Trend Hourly Chart
Sideways
Hourly Indicators
Rising
13 HR RSI
61
14 HR DMI
+ve
Daily Analysis
Initial rise b4 strg retreat
Resistance
1.6481 - Last Fri's European high
1.6433 - 61.8% r of 1.6525-1.6284
1.6403 - Hourly chart
Support
1.6322 - Y'day's low
1.6284 - Last Fri's NY low
1.6247 - Last Thur's low (AUS)
. GBP/USD - 1.6371 ... The British pound tracked euro's movement closely on Mon. Despite initial weakness to 1.6287 in NZ, cable rebounded after holding abv last Fri's 1.6584 low to 1.6666 in European morning. Despite a retreat to 0.6322, cable climbed to 1.6369 near NY close, then 1.6373 ahead of Asian open.
. Looking at the hourly & daily charts, y'day's rebound suggests the strg retreat fm last Fri's high at 1.6525 to 1.6284 has formed a temporary low there 1-2 days of choppy consolidation wud be seen with mild upside bias. Although further gain to 1.6403/05 (being hourly res n 50% r of 1.6525-1.6284 respectively) cannot be ruled out, reckon 'dynamic' res at 1.6433 (61.8% r) wud cap upside n yield another decline later. Looking ahead, although cable's strg rebound fm Sep's near 10-month trough at 1.6052 confirmed MT fall fm Jul's near 6-year peak at 1.7192 has made a temporary low, last Fri's selloff signals at least the leg of correction is over n weakness to 1.6233 (61.8% r) is expected, below, 1.6052.
. Today, cable's intra-day firmness due partly to cross-buying in sterling wud extend marginal gain, indicated res 1.6403/05 shud cap upside n yield subsequent decline. Selling on up move for weakness twd 1.6322 is therefore favoured.
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