DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 29 May 2015 01:10GMT
Trend Daily Chart
Sideways
Daily Indicators
Turning down
21 HR EMA
1.5350
55 HR EMA
1.5319
Trend Hourly Chart
Down
Hourly Indicators
Bullish convergences
13 HR RSI
46
14 HR DMI
-ve
Daily Analysis
Consolidation b4 marginal fall
Resistance
1.5475 - Tue's high
1.5437 - Wed's high
1.5386 - Y'day's high
Support
1.5260 - Y'day's low
1.5240 - May 07 hourly sup
1.5191 - 50% r of 1.4566-1.5815
. GBP/USD - 1.5311... Despite staging a brief bounce to 1.5386 in European morning on Thur, the British pound tumbled after the release of weaker-than-expected UK GDP data (2nd reading) n weakened to as low as 1.5260 in NY morning b4 rebounding to 1.5327 in tandem with eur/usd near NY close on short-covering.
. On the daily chart, although cable's rally abv Apr's 1.5498 peak at 1.5498 to as high as 1.5815 in May confirms MT downtrend fm 2014 peak at 1.7192 has indeed formed a temporary low at 1.4566, last week's sharp retreat to 1.5445 signals aforesaid upmove has formed a top there. Y'day's selloff to 1.5260 adds credence to this view n looking ahead, the 3-legged decline fm 1.5815 indicates aforesaid correction fm 1.4566 has ended n cable is en route to 1.5191, then twd 1.5043 next week, being 50% r & 61.8% r respectively of the entire of said rise fm 1.4566. Therefore, selling the pound on recovery in anticipation of further weakness to abovementioned targets is favoured. Only abv 1.5437 (Wed's high wud signal a temporary bottom is made n risk gain twd 1.5508 (Mon's high).
. Today, although y'day's rebound fm 1.5260 suggests consolidation wud be seen initially, reckon 1.5386 res wud cap upside n may yield one more fall.
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