DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 16 Oct 2014 01:29GMT
Trend Daily Chart
Sideways
Daily Indicators
Bullish convergences
21 HR EMA
1.5965
55 HR EMA
1.5975
Trend Hourly Chart
Sideways
Hourly Indicators
Rising
13 HR RSI
59
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.6127 - Mon's high
1.6070 - Y'day's high
1.6021 - Hourly chart
Support
1.5940 - Prev. res, now sup
1.5875 - Y'day's fresh 11-month in NY
1.5820 - 61.8% proj. of 1.7192-1.6052 fm 1.6525
. GBP/USD - 1.5998 ... Cable swung wildly on Wed. Despite initial drop to 1.5877 in Asia, short-covering lifted cable n the pair later rallied to as high as 1.6070 due to dlr's broad-based weakness on downbeat U.S. retail sales. Price tumbled to fresh 11-month low at 1.5875 b4 rebounding to 1.6021 at NY close.
. Looking at the hourly n daily charts, y'day's strg rebound fm 1.5875 to 1.6021 suggests MT downtrend fm Jul's near 6-year peak at 1.7192 has possibly formed a temporary low there n few days of choppy consolidation with mild upside bias wud be seen, a breach of 1.6070 (y'day's high in NY morning) anytime wud confirm this view n stronger retracement to 1.6123/27, being min. 38.2% r of intermediate fall of 1.6525-1.5875 n Mon's high respectively, n then 1.6050/60 wud follow, however, hourly oscillators wud be in o/bot territory on such a move n price wud falter below 1.6200 (50% r fm 1.6525) n yield another fall next week.
. In view of abv analysis, buying cable on dips is recommended today n only a daily close below 1.5900 wud confirm aforementioned recovery is over n yield resumption of decline fm 1.7192 to re-test 1.5875, break wud extend to next downside obj. at 1.5820, this is 61.8% proj. of 1.7192-1.6052.
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