WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 11 Oct 2015 23:30GMT
Trend Daily Chart
Sideways
Daily Indicators
Turing up
21 HR EMA
1.5329
55 HR EMA
1.5319
Trend Hourly Chart
Sideways
Hourly Indicators
Falling
13 HR RSI
44
14 HR DMI
-ve
Daily Analysis
Consolidation with upside bias
Resistance
1.5421 - 38.2% r of 1.5930-1.5107
1.5382 - Last Fri's 2-1/2 week high
1.5340 - Reaction hourly fm 1.5300
Support
1.5261 - Last Thur's low
1.5245 - Last Mon's high (now sup)
1.5212 - 61.8% r of 1.5107-1.5382
. GBP/USD - 1.5319... Cable continued its recent winning streak n rallied to a 2-/12 week peak of 1.5382 on Fri following release of dovish FOMC minutes late Thur b4 coming off in NY session on Fri due to selling of sterling vs euro.
. Let's look at the bigger picture 1st, despite resumption of medium-term decline fm Jun's 7-month peak at 1.5930 to 1.5107 on the 1st day of Oct, cable's impressive rally to as high as 1.5382 last Fri suggests aforesaid fall has made a temporary low there as this lvl was accompanied by 'bullish convergences' on both hourly & daily indicators. A daily close abv 1.5383 would bode well for the pound to extend current gain to 1.5421 n possibly twd 1.5518 later this month, being a 'minimum' 38.2% r n 50% r respectively of said decline fm 1.5930. Therefore, buying cable on dips is favoured n only a daily close below 1.5245 (prev. res, now sup) suggests 1st leg of correction over n risks 1.5180/90.
. Today, although Fri's intra-day selloff fm 1.5382 (Europe) to as low as 1.5300 suggests a temporary top is made (as said Fri's top was accompanied by 'bearish divergences' on hourly indicators) n 1-2 days of consolidation is seen,
reckon 1.5261 (Thur low) would contain weakness n yield rebound.
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