DAILY GBP/USD TECHNICAL OUTLOOK Last Update At 19/05/2015 00:46 GMT
Trend Daily Chart
Up
Daily Indicators
Rising
21 HR EMA
1.5675
55 HR EMA
1.5700
Trend Hourly Chart
Near term down
Hourly Indicators
Falling
13 HR RSI
37
14 HR DMI
-ve
Daily Analysis
Consolidation b4 one more fall
Resistance
1.5815 - Last Thur's 5-month high
1.5745 - Y'day's high
1.5707 - Y'day's houryly res
Support
1.5633 - Last Wed's low
1.5614 - May 11 high, now sup
1.5557 - May 12 low
. GBP/USD - 1.5655... Despite last Fri's brief rebound fm 1.5702 to 1.5809 , the British pound ratcheted lower y'day n penetrated said sup at European morning. Cable then weakened to 1.5651 b4 rebounding briefly to 1.5707 but only to fall again to session low of 1.5638 near New York close.
. Looking at the bigger, cable's early rally abv Apr's 1.5498 high (now sup) n then breach of 2015 top at 1.5554 (Feb) to as high as 1.5815 last Thur confirms erratic upmove fm Apr's near 5-year trough at 1.4566 to retrace entire MT downtrend fm 1.7192 (2014 Jul) wud resume after consolidation. As the daily technical indicators are still rising, suggesting buying cable on dips is the way to go for gain to next upside target at 1.5879 (being 50% r of 1.7192-1.4566). Having said that, prominent 'bearish divergences' on the hourly indicators wud prevent strg gain this week n reckon 1.6020, this is 100% projection of 1.4566-1.5498 measured fm 1.5088, shud cap upside. On the downside, a daily close below 1.5633 wud signal temporary top is made n risk retrace. twd 1.5557.
. Today, as cable has remained under pressure at Asian open, selling on recovery is favoured for weakness to 1.5600/05 but 1.5557 shud hold fm here.
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