GBP/USD Daily Technical Outlook: January 10, 2013

DAILY TECHNICAL OUTLOOK ON GBP/USD

Last Update At
10 Jan 2013 00:08GMT

Trend Daily Chart
Sideways

Daily Indicators
Turning down

21 HR EMA
1.6029

55 HR EMA
1.6050

Trend Hourly Chart
Near term down

Hourly Indicators
Oversold

13 HR RSI
37

14 HR DMI
-ve

Daily Analysis
Marginal weakness b4 rebound

Resistance
1.6129 - Tue's high
1.6075 - Y'day's high
1.6033 - Y'day's NY high

Support
1.5992 - Y'day's low
1.5962 - Nov 28 low
1.5920 - Nov 22 NY low

. GBP/USD - 1.6013 ... The British pound tracked euro's movement closely y'day as cable met renewed selling at 1.6075 in Europe n then extended recent decline to a low of 1.5992 in part due to active cross selling in sterling (eur/gbp rose fm 0.9134 to 0.9163) b4 recovering to 1.6033 in late NY.

. Looking at the hourly chart, as cable has remained under pressure, suggesting as long as y'day's high of 1.6075 holds, the decline fm last Wed's 15- month high of 1.6380 may extend marginally twds previous daily sup at 1.5962 (Nov 28 low), however, bullish convergences on hourly oscillators shud limit downside to 1.5944, being 50% projection fm 1.6380-1.6010 measured fm 1.6129, n bring a much-needed strg rebound later today or tom. On the upside, a breach of 1.6075 wud confirm a temp. low is made n may bring rebound to 1.6129 res, abv wud encourage for further gain to 1.6232 (61.8% r of 1.6380-1.5992).

. Today, selling on intra-day recovery in anticipation of such marginal weakness is recommended n position traders may turn long there for prospect of a much-needed strg rebound. Only below 1.5944 wud risk weakness to 1.5900.

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