DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 23 Jan 2015 00:40GMT
Trend Daily Chart
Down
Daily Indicators
Bullish convergences
21 HR EMA
1.5070
55 HR EMA
1.5107
Trend Hourly Chart
Down
Hourly Indicators
O/sold
13 HR RSI
28
14 HR DMI
-ve
Daily Analysis
Resumption of MT downtrend
Resistance
1.5123 - Y'day's Asian low
1.5076 - Wed's low
1.5034 - Prev. Jan's low
Support
1.4973 - Y'day's fresh 17-month low
1.4952 - 2.23 times extn of 1.5785-1.5486 fm 1.5621
1.4910- 61.8% r of 1.3500-1.7192
. GBP/USD - 1.5014... Despite cable's rebound fm Asian low at 1.5076 to 1.5213 ahead of NY open, the British pound tumbled in tandem with intra-day sharp sell off in eur/usd after ECB unleashed massive bound buying programme. The pound nosed dived below Jan's 1.5034 to a fresh 17-month trough of 1.4973.
. Looking at bigger picture, y'day's firm breach of prev. bottom at 1.5034 confirms MT downtrend fm 2014 peak at 1.7192 (Jul) to correct the LT rise fm 1.3500 (2009 low in Jan) has resumed n price wud be en route to to 1.4910 (61.8% r of 1.3500-1.7192) soon, however, reckon 2013 bottom at 1.4814 wud hold. Today, as price is currently trading below both 21-hr n 55-hr emas, suggesting downside bias remains for further weakness to 1.4952, this is 2.236 times extension of 1.5785-1.5486 measured fm 1.5621, however, oversold readings on the hourly oscillators wud keep price abv 1.4910 n yield minor correction later.
. In view of abv analysis, selling the pound on intra-day recovery is the way to go but profit shud be taken on subsequent decline. On the upside, only a daily close abv 1.5034 wud indicate a temporary low is made n risk stronger retracement to 1.5076 but 1.5123 (prev. sup, now res) shud cap upside.
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