Daily Technical Outlook & Trading Ideals on GBP/USD : July 30, 2014

  DAILY GBP/USD TECHNICAL OUTLOOK

Last Update At 30 Jul 2014 00:48GMT

Trend Daily Chart
Up

Daily Indicators
Falling

21 HR EMA
1.6953

55 HR EMA
1.6938

Trend Hourly Chart
Down

Hourly Indicators
Bullish convergences

13 HR RSI
69

14 HR DMI
-ve

Daily Analysis
Consolidation b4 marginal fall

Resistance
1.7054 - Last Thur's high
1.7024 - Last Wed's low (now res)
1.6995 - Y'day's high

Support
1.6934 - Y'day's low
1.6920 - Jun 18 low
1.6884 - 61.8% r of 1.6693-1.7180


. GBP/USD - 1.6946 ... Despite cable's brief drop to 1.6968 ahead of European open on Tue, the pair rebounded briefly to 1.6995 on short-covering in Europe but selling interest quickly emerged n cable tumbled to 1.6933 in NY morning after the release of much stronger-than-expected US consumer confidence.

. Looking at the daily picture, last week's break of 1.7037 strongly suggests the LT uptrend has formed a temporary top at 1.7192 n y'day's breach of indicated daily sup at 1.6952 confirms this view n further weakness to 1.6919/20 (61.8% projection of 1.7095-1.6962 measured fm 1.7001 n Jun 18 low respectively) wud be seen, however, as hourly oscillators' readings have displayed 'bullish convergences', steep decline is unlikely to be seen. Going forward, a daily close below 1.6920 wud send cable lower to 1.6845 n then twd 1.6738 in Aug.

. Today, we're holding a short position in anticipation of marginal weakness to 1.6920 n wud look to sell cable again on subsequent recovery as only abv 1.6995/01 res area (y'day's n Mon's high respectively) wud confirm a temp. low is made n risk retracement to 1.7024, break wud bring stronger gain to 1.7054, however, 1.7095/99 res area is expected to remain intact.