DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 20 Aug 2014 00:29GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.6641
55 HR EMA
1.6674
Trend Hourly Chart
Down
Hourly Indicators
Rising fm o/s
13 HR RSI
21
14 HR DMI
-ve
Daily Analysis
Resumption of recent decline
Resistance
1.6739 - Mon's high
1.6680 - Last Fri's NY low
1.6657 - Last Thur's low (now res)
Support
1.6611 - Y'day's 4-month low
1.6584 - 1.618 ext. of 1.7001-1.6812 fm 1.6890
1.6554 - Apr 04 low
. GBP/USD - 1.6720 ...Despite Mon's brief bounce to 1.6739 in NZ following BoE Carney's hawkish comments in UK Sun Times, the British pound tumbled on Tue after the release of surprise lower-than-expected U.K. CPI data. Price easily penetrated last Thur's 1.6657 trough to a fresh 4-month low at 1.6611 in NY.
. Looking at the hourly n daily charts, y'day's selloff confirms MT down-trend fm Jul's near 6-year peak of 1.7192 resumed n a stronger retracement of the LT uptrend fm 2009 trough at 1.3500 remains in force n as long as 1.6739 res holds, downside bias remains for further weakness to next daily minor sup at 1.6551, however, as hourly oscillators wud display minor bullish convergences on next fall, suggesting downside wud be ltd to 1.6523/10 (50% r of 1.5854-1.7192 n equality proj. of 1.7192-1.6812 fm 1.6890 respectively) n risk fm there has increased for a much-needed rebound.
. In view of current bearish scenario, selling cable again on recovery in anticipation of further weakness is the way to go. On the upside, only a breach of 1.6739 res (Mon's high) wud violate recent series of lower high n lower lows fm 1.7192 top (Jul) n risk stronger retracement to 1.6780/90.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.