WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 14 Dec 2014 23:46GMT
Trend Daily Chart
Down
Daily Indicators
Bullish convergences
21 HR EMA
1.5718
55 HR EMA
1.5708
Trend Hourly Chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
56
14 HR DMI
+ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.5791 - 61.8% r of 1.6145-1.5541
1.5763 - Last Mon's high
1.5557 - Y'day's high
Support
1.5652 - Y'day's low
1.5648 - Wed's low
1.5626 - Tue's low
. GBP/USD - 1.5728... Although cable opened lower in tandem with eur/usd last Mon n fell to a fresh 14-month trough at 1.5541, however, rebound in the single ccy quickly led to short-covering in sterling, the pound ratcheted higher to 1.5757 on Thur b4 retreating to 1.5652. Price rebounded to 1.5746 Fri in NY.
. On the bigger picture, as cable's aforesaid 2014 low at 1.5541 was accompanied by prominent 'bullish convergences' on the daily indicators, suggesting the MT downtrend fm Jul's near 6-year peak at 1.7192 has possibly formed a temporary low there, a daily close abv 1.5757 wud add credence to this view, then price wud be en route to next chart obj. at 1.5826, break wud encourage for further headway twd 1.5875 (Oct's low), then 1.5826. On the downside, only a failure to penetrate 1.5757 res n subsequent break below 1.5626/30 sup wud signal correction is over n yield re-test of 1.5541, then one more fall to 1.5500/10, however, reckon 1.5360 (equality measure. of 1.7192-1.6052 fm 1.6525) wud hold.
. Today, expect initial sideways move in Asia n as long as Fri's low at 1.5696 holds, intra-day upside bias for re-test of 1.5757 1st, abv wud encourage for subsequent gain to 1.5770 , then 1.5785/87. Only below 1.5752 risks 1.5626.
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