Daily Technical Outlook & Trading Ideals on GBP/USD: Sept 12, 2014

  DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 12 Sep 2014 00:28GMT

Trend Daily Chart
Down

Daily Indicators
Rising fm o/s

21 HR EMA
1.6232

55 HR EMA
1.6203

Trend Hourly Chart
Near term up

Hourly Indicators
Turning down

13 HR RSI
54

14 HR DMI
+ve

Daily Analysis
Marginal rise b4 strg retreat

Resistance
1.6395 - Prev. hourly sup (now res)
1.6340 - Last Fri's high
1.6281 - Last Fri's low, now res

Support
1.6186 - Y'day's Asian low
1.6170 - Wed's NY morning high
1.6052 - Y'day's fresh near 10-month low


. GBP/USD - 1.6241 ... Despite cable's retreat fm Wed's 1.6231 tpp to 1.6186 in Asia on Thur, renewed buying interest contained weakness n price resumed upmove fm Wed's near 10-month low at 1.6052 fm in Europe. Cable later rose to 1.6270 in NY morning b4 retreating to 1.6215 n then climbed to 1.6277 in Aust.

. Cable's strg rebound fm 1.6052 to as high as 1.6270 confirms the recent MT downtrend fm Jul's near 6-year peak at 1.7192 has finally formed a temporary bottom there as this low was accompanied by prominent 'bullish convergences' on the hourly oscillators, therefore, a few days of choppy consolidation wud be seen n stronger retracement to 1.6279/81 ('minimum' 38.2% r of intermediate fall fm 1.6645-1.6052 n last Fri's sup, now res respectively) is envisaged, however, reckon res at 1.6340 (last Fri's high) wud cap upside n yield another fall. On the downside, only a breach of 1.6052 wud extend weakness twd 1.6000 next week.

. Today, as current price is still trading abv 21-hr n 55-hr emas, suggesting near term upside bias remains n buying on dips is favoured in anticipation of marginal rise, however, one can sell on next up move. On the downside, below 1.6125 sup wud signal correction is over n yield weakness to 1.6080/90.