Daily Technical & Trading Outlook GBP/USD

   DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 23 Dec 2015 00:01GMT

Trend Daily Chart
Down

Daily Indicators
Falling

21 HR EMA
1.4846

55 HR EMA
1.4978

Trend Hourly Chart
Down

Hourly Indicators
Bullish convergences

13 HR RSI
33

14 HR DMI
-ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.4928 - Mon's high
1.4907 - Y'day's high
1.4865 - Last Thur's 7-month trough (now res)

Support
1.4806 - Y'day's 8-month low
1.4760 - 80.9% proj. of 1.5100-1.4865 fm 1.4950
1.4743 - 80.9% proj. of 1.5510-1.4896 fm 1.5240

. GBP/USD - 1.4820... Sterling continued its recent losing streak n tanked in Europe after UK public debts deepened, price penetrated last week's 1.4865 low to an 8-month trough of 1.4806 in NY afternoon b4 staging a recovery.

. On the bigger picture, y'day's cross-inspired breach of said last week's 1.4865 low a an 8-month trough of 1.4806 confirms MT downtrend fm 2015 peak at 1.5930 (Jun) has once again resumed n would yield weakness twd measured target at 1.4687 (100% proj. of 1.5930-1.5107 measured fm 1.5510) next week, however, as daily oscillator's readings would would be in oversold territory on such move, steep fall is therefore is not expected. Therefore, selling the pound on recovery is favoured n only a daily close abv 1.4950 would be the 1st signal temporary low has been made, the risk is seen for a correction twd 1.5100.

. Today, despite cable's recovery fm y'day's NY low at 1.4806, as current price is trading below the 21-hr n 55-hr emas, suggesting intra-day downside bias remains for one more fall, however, 'bullish convergences' on hourly indicators should prevent steep drop, reckon 1.4760 would hold n bring correction later today or tomorrow. We have exited previous long position for this reason.