WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 01 Sep 2014 00:05GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.6589
55 HR EMA
1.6586
Trend Hourly Chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
53
14 HR DMI
+ve
Daily Analysis
Consolidation b4 one more fall
Resistance
1.6680 - Last Wed's high
1.6657 - Aug 14 low
1.6615 - Last Thur's high
Support
1.6535 - Last Mon's low (NZ)
1.6523 - 50% r of 1.5854-1.7192
1.6460 - Mar 24 low
. GBP/USD - 1.6593... Despite a gap-down open to a 4-1/2 month trough of 1.6535 in NZ last Mon, cable swung wildly for rest of the week. Price staged a short-covering rebound to 1.6599 on Mon b4 falling back to 1.6537 at Wed open but only to climb to a 1-week high of 1.6615 Thur, then moved sideways on Fri.
. Looking at the bigger picture, although sterling finally found respite after enduring 6 weeks of losing streak n initial choppy trading abv 1.6535 is envisaged, a daily close abv 1.6657 (prev. low) is needed to confirm MT fall fm 2014 6-year peak at 1.7192 (Jul) has finally made a temporary low, then stronger gain to 1.6680 res wud be seen, a break there wud violate the recent series of lower highs n lower lows n yield corerction twd 1.6864 (50% r of 1.7192-1.6535).
Until then, as dlr is expected to rise vs its major peers, selling the pound in anticipation of resumption of MT downtrend to 1.6523 (50% r of LT intermediate rise fm 1.5854-1.7192) is still favoured, reckon daily up at 1.6460 (Mar low) may hold on 1st testing.
. Today, intra-day weakness in eur/usd shud weigh on cable n as long as 1.6615 holds, decline twd 1.6535 is likely n only abv 1.6555/57 risks 1.6580.
Recommended Content
Editors’ Picks
EUR/USD falls back toward 1.1150 as US Dollar rebounds
EUR/USD is falling back toward 1.1150 in European trading on Friday, reversing early gains. Risk sentiment sours and lifts the haven demand for the US Dollar, fuelling a pullback in the pair. The focus now remains on the Fedspeak for fresh directives.
Gold hits new highs on expectations of global cuts to interest rates
Gold (XAU/USD) breaks to a new record high near $2,610 on Friday on heightened expectations that global central banks will follow the Federal Reserve (Fed) in easing policy and slashing interest rates.
USD/JPY recovers to 143.00 area during BoJ Governor Ueda's presser
USD/JPY stages a recovery toward 143.00 in the European morning following the initial pullback seen after the BoJ's decision to maintain status quo. In the post-meeting press conference, Governor Ueda reiterated that they will adjust the degree of easing if needed.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.