Weekly GBP/USD TECHNICAL OUTLOOKLast Update At 17 Nov 2014 00:31GMT
Trend Daily Chart
Down
Daily Indicators
Bullish convergences
21 HR EMA
1.5774
55 HR EMA
1.5614
Trend Hourly Chart
Sideways
Hourly Indicators
Turning up
13 HR RSI
54
14 HR DMI
-ve
Daily Analysis
Consolidation with a neutral bias
Resistance
1.5790 - Nov 09 low (now res)
1.5760 - Last Thur's Aust. low
1.5695 - Last Fri's NY high
Support
1.5632 - 61.8% r of 1.5593-1.5695
1.5593 - Last Fri's fresh 14-month low
1.5536 - 100% proj. of 1.6525-1.5875 fm 1.6186
. GBP/USD - 1.5689... Despite trading initially abv its previous week's 1-year low of 1.5790 last week n recovering to 1.5945 Tue, the British pound tumbled on Wed after dovish BoE Inflation Report. Cable remained under pressure due to active cross-selling in sterling n weakened to 1.5593 Fri b4 recovering.
. Let's look at the bigger picture 1st, Fri's sello ff to a fresh 14-month trough of 1.5593 suggests MT downtrend fm May's near 6-year peak remains in progress n expect initial consolidation b4 extending further weakness to next projected downside target at 1.5536, this is equality measurement of intermediate fall fm 1.6525-1.5875 projected fm 1.6186. Having said that, as both hourly & daily technical indicators wud display 'bullish convergences' on such move, reckon 1.5456 (1.236 times extension of 1.6186-1.5790 fm 1.5945) wud contain weakness n bring correction later this week. On the upside, abv 1.5780/90 confirms a temporary low is made, then correction to 1.5835, 1.5877/82 wud follow.
. Today, although Fri's rebound fm 1.5593 signals a minor low is made n buying on dips is favoured, one can later sell the pound on further intra-day gain as 1.5750/60 wud cap upside n yield subsequent retreat.
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