WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 27 Oct 2014 00:11GMT
Trend Daily Chart
Sideways
Daily Indicators
Bullish convergences
21 HR EMA
1.6073
55 HR EMA
1.6064
Trend Hourly Chart
Near term up
Hourly Indicators
Rising
13 HR RSI
59
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.6186 - Last Tue's high
1.6131 - Wed's high
1.6104 - Mon's high (Aust.)
Support
1.6017 - Last Fri's low
1.5995 - Y'day's low
1.5966 - 70.7% r of 1.5875-1.6186
. GBP/USD - 1.6089 ... Although the pound extended previous week's up move fm Oct's 11-month trough at 1.5875 to 1.6186 last Tue, release of 'dovish' BoE minutes sent cable tanking to 1.6012, then 1.5995 Thur. Price managed to stage a short-covering rebound to 1.6099 due to usd's weakness in in NY morning on Fri.
. Let's look at the bigger picture 1st, cable's aforesaid rebound fm 1.5875 to 1.6186 signals MT downtrend fm Jul's near 6-year peak at 1.7192 has made a temporary low at 1.5875 n subsequent retreat fm 1.6186 suggests consolidation with downside bias is envisaged this week, a daily close below 1.5995 wud signal correction is over, then weakness twd 1.5875 wud be seen, however, as both the hourly & daily indicators wud display 'bullish convergences' on next decline, reckon projected sup at 1.5820, being 61.8% proj. of MT fall fm 1.7192-1.6052 measured fm 1.6525, wud contain weakness. On the upside, abv 1.6186 (reaction high fm 1.5875) wud confirm MT decline fm 1.7192 has indeed made a temporary low, the gain to 1.6379 wud be seen, this is 38.2% r fm 1.7192.
. Today, w/end's hawkish comments by BoE's McCafferty sent cable briefly to 1.6104, n gain to 1.6140 may be seen but 1.6186 shud hold n yield retreat.
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