DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 20 Nov 2014 00:42GMT
Trend Daily Chart
Down
Daily Indicators
Bullish convergences
21 HR EMA
1.5666
55 HR EMA
1.5660
Trend Hourly Chart
Near term up
Hourly Indicators
Neutral
13 HR RSI
55
14 HR DMI
+ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.5760 - Last Thur's Aust. low
1.5737 - Mon's high
1.5720 - Y'day's NY high
Support
1.5647 - Y'day's NY low
1.5620 - Mon's low
1.5590 - Y'day's fresh 14-mth low
. GBP/USD - 1.5674 ... Despite cable's brief drop below last Fri's 1.5593 low to 1.5590 (1.55895 to be exact) in Europe, price jumped n later rallied to 1.5701 at European midday after MPC minutes showed 2 policymakers supported a rate rise. Price later climbed to 1.5720 after FOMC minutes b4 retreating.
. Looking at the hourly & daily charts, cable's rally fm y'day's fresh 14-month trough at 1.5590 to as high as 1.5720 signals MT downtrend fm Jul's near 6-year peak at 1.7192 has made a temporary low there as aforesaid low was accompanied by prominent 'bullish convergences' on the hourly oscillators, subsequent macd's rise abv the zero line adds credence to this view, suggesting a few days of choppy consolidation with upside bias wud be seen n abv 1.5737 res (this week's high) wud bring stronger gain to 1.5768, this is a 'natural' 50% r of the intermedaite fall fm 1.5945-1.5590.
On the downside, a daily close below 1.5620 wud signal correction is over, then one more fall twd 1.5636 wud follow.
. Today, intra-day softness following y'day's retreat fm 1.5720 suggests consolidation is in store with initial downside bias, however, reckon NY low at 1.5647 wud contain weakness n bring another rebound, abv 1.5720, 1.5737.
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