Daily Technical Outlook & Trading GBP/USD: Jun 26, 2015

   DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 26 Jun 2015 00:47GMT

Trend Daily Chart
Up

Daily Indicators
Bearish divergences

21 HR EMA
1.5731

55 HR EMA
1.5737

Trend Hourly Chart
Sideways

Hourly Indicators
Rising

13 HR RSI
55

14 HR DMI
+ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.5844 - Mon's NY high
1.5803 - Wed's high
1.5770 - Y'day's high

Support
1.5718 - Reaction low fm 1.5770
1.5667 - Wed's low
1.5626 - Jun 16 low

. GBP/USD - 1.5740... Despite cable's brief drop to 1.5777 ahead of European open on Thur, renewed buying abv Wed's low at 1.5667 lifted the pound n intra-day broad-based buying of sterling vs eur & yen sent price sharply higher to session peak of 1.5770 in NY morning b4 falling back to 1.5718.

. Looking at the hourly n daily charts, Tue's breach of sup at 1.5806 to 1.5708 n then subsequent selloff 1.5667 on Wed confirms cable's MT 3-legged rise fm Apr's near 5-year bottom at 1.4566 has made a top at last Thur's 7-month peak at 1.5930 n despite y'day's strg rebound to 1.5770, as long as res area at 1.5803/13 holds, downside bias remains for a long-awaited correction of aforesaid upmove fm 1.4566 to 1.5640, then 1.5550 next week, being 38.2% r n 50% r respectively of the intermediate rise fm 1.5170 (Jun's low). On the upside, only a daily close abv indicated res area at 1.5803/13 wud signal 1st leg of correction fm 1.5930 top is over n risk stronger gain to 1.5870/80.

. Today, in view of abv analysis, selling cable on intra-day rise is recommended as 1.5803/13 shud cap upside or one can buy on next fall as 'bullish convergences' on hourly indicators shud limit weakness to 1.5626 n bring rebound.