WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 19 Apr 2015 23:52GMT
Trend Daily Chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.4960
55 HR EMA
1.4915
Trend Hourly Chart
Near term up
Hourly Indicators
Turning down
13 HR RSI
53
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.5097 - 50% proj. of 1.4701-1.5053 fm 1.4921
1.5053 - Last Fri's high
1.5008 - Mar 19 high
Support
1.4916 - Last Fri's low
1.4880- Last Thur's Asian high (now sup)
1.4812 - Last Thur;s low
. GBP/USD - 1.4967... Although cable resumed MT downtrend to a near 5-year low of 1.4566 at the start of last week as market jitter of a hung parliament after May 7 U.K. election weighed on the sterling. Cable rallied in tandem with eur/usd n climbed for 5 consecutive days to 1.5053 in Europe Fri b4 retreating.
. On the daily chart, cable's aforesaid surprise rally fm 1.4566 to as high as 1.5053 confirms downtrend fm 2014 near 6-year peak at 1.7192 has indeed formed a temporary low there as this lvl was accompanied by 'bullish convergences' on both hourly & daily indicators n consolidation with upside bias is in store this week. A daily close abv 1.5166 wud retain bullish prospect for further headway to 1.5314 n possibly twd 1.5545, being a 'minimum' 38.2% r n 50% r respectively of intermediate decline fm 1.6525-1.4566. In view of abv analysis, buying cable on dips is recommended in anticipation of subsequent resumption of near upmove to 1.5166. On the downside, below 1.4802 wud signal 1st leg of correction is over n may risk stronger retracement twd 1.4701 b4 rebound.
. Today, Fri's retreat fm 1.5053 suggests consolidation is in store, reckon 1.4880/84 wud contain weakness n abv 1.5083 wud yield upmove to 1.5090/00.
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