DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 02 Oct 2014 00:14GMT
Trend Daily Chart
Down
Daily Indicators
Turning up
21 HR EMA
1.6194
55 HR EMA
1.6212
Trend Hourly Chart
Down
Hourly Indicators
Bullish convergences
13 HR RSI
49
14 HR DMI
+ve
Daily Analysis
Consolidationwith downside bias
Resistance
1.6342 - Last Thur's NY high
1.6287 - Y'day's high
1.6252 - Y'day's high
Support
1.6161 - Y'day's low
1.6142 - 80.9% r of 1.6052-1.6525
1.6125 - Hourly chart
. GBP/USD - 1.6191... Trading the pound was tricky y'day as price swing wildly. Cable came initial selling pressure in Asia n despite a recovery to 1.6214 in Europe, price briefly tanked to a 2-week low of 1.6161 after downbeat U.K. mfg PMI but short-covering lifted price to 1.6252 in NY b4 retreating to 1.6173.
. Looking at the hourly & daily charts, as mentioned in previous update, although cable's early strg rebound fm Sep's 9-1/2 month trough at 1.6052 to 1.6525 confirms the MT downtrend fm Jul's near 2-year peak at 1.7192 has formed a temporary low there, y'day's weakness to 1.6161 strongly suggests correction is over n consolidation with downside bias is seen for re-test of said y'day's low, a daily close below wud add credence to this view n yield weakness twd 1.6052 later next week. On the upside, only a daily close abv 1.6287 wud dampen bearish scenario on cable as such price action wud indicate decline fm 1.6525 has made a low, then gain twd 1.6342/43 (res n 50% r of 1.6525-1.6161) may be seen.
. Today, expect initial choppy trading after y'day's volatile moves, however, as [price is currently trading below the 21-hr & 55-hr emas, selling on recovery is favoured, below 1.6161 wud encourage for weakness to 1.6142, 1.6125.
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