DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 19 Dec 2014 00:06GMT
Trend Daily Chart
Down
Daily Indicators
Bullish convergences
21 HR EMA
1.5648
55 HR EMA
1.5654
Trend Hourly Chart
Nr term up
Hourly Indicators
Rising
13 HR RSI
58
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.5738 - Wed's European high
1.5699 - Post-FOMC high Wed
1.5676 - Y'day's high
Support
1.5605 - Y'day's NY morning sup
1.5539 - Thur's fresh 14-month low
1.5500 - Pychological sup
. GBP/USD - 1.5667... Although cable tracked euro's intra-day move closely in Asia n early Europe on Thur n fell fm 1.5594 to 1.5551, buying interest abv Wed's fresh 14-month low at 1.5539 lifted price fm there n cable later rallied to 1.5666 after upbeat U.K. retail sales n then 1.5676 in NY b4 easing.
. Looking at the hourly n daily charts, y'day's rally after holding abv Wed's fresh 14-month trough at 1.5539 strongly suggests the MT downtrend fm Jul's near 6-year peak at 1.7192 has formed a temporary low there n as long as 1.5605 (y'day's NY low) holds, stronger gain twd 1.5691/99 (being the 'dynamic' 61.8% r of 1.5785-1.5539 n post FOMC high respectively), abv there wud add credence to this view n further headway to 1.5738 (chart obj.) n then 1.5755 wud follow, however, as hourly oscillators wud be in o/bot territory on such a move, reckon 1.5755 (Wed's high) wud cap upside n yield strg retreat later.
. In view of abv analysis, buying cable on dips is cautiously favoured today. On the downside, only below 1.5539 wud revive early bearishness n risk subsequent weakness twd 1.5500 (psychological sup) but 1.5463 (50% proj. of 1.6186-1.5541 measured fm 1.5785) shud remain intact.
_20141219065741.png "gbp")
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