Daily Technical Outlook & Trading Ideals on GBP/USD : Oct 21, 2014

  DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 21 Oct 2014 00:35GMT

Trend Daily Chart
Sideways

Daily Indicators
Bullish convergences

21 HR EMA
1.6141

55 HR EMA
1.6106

Trend Hourly Chart
Near term up

Hourly Indicators
Rising

13 HR RSI
65

14 HR DMI
+ve

Daily Analysis
Consolidation with upside bias

Resistance
1.6227 - Oct 09 high
1.6200 - 50.0% r of 1.6525-1.5875
1.6179 - Y'day's high

Support
1.6127 - Hourly chart
1.6080 - Y'day's low
1.6030 - Last Fri's low

. GBP/USD - 1.6164 ... Despite y'day's brief retreat to session low at 1.6080 at European open, the British pound pared intra-day loss n rose to 1.6151 at NY open, helped by active cross-buying of sterling vs euro. Price continued to trade with a firm bias n climbed to a high of 1.6179 in NY afternoon.

. Looking at the hourly n daily charts, y'day's rally abv last Fri's high at 1.6126 suggests MT downtrend fm Jul's near 6-year peak at 1.7192 has formed a temporary low at last Wed's fresh 11-month trough at 1.5875 n consolidation with upside bias wud be seen for a stronger retrace. to 1.6200, being the 'natural' 50% r of intermediate fall fm 1.6525. Having said that, as hourly oscillators wud wud display bearish divergences on next rise, reckon res at 1.6227 (Oct 09 high) shud remain intact n bring a much-needed retreat later. On the downside, only below last Fri's low at 1.6030 wud indicate said recovery has ended instead n turn outlook bearish for weakness twds 1.5940.

. Today, in view of abv analysis, we're trading cable on both sides of the market n buy on intra-day retreat for marginal gain twd 1.6200 or sell if price climbs to there 1st for a much-needed retracement. Below 1.6080, 1.6030/40.