DAILY TECHNICAL OUTLOOK ON GBP/USDLast Update At 22 Apr 2014 00:40GMT
Trend Daily Chart
Up
Daily Indicators
Bearish divergences
21 HR EMA
1.6794
55 HR EMA
1.6796
Trend Hourly Chart
Sideways
Hourly Indicators
Falling
13 HR RSI
42
14 HR DMI
-ve
Daily Analysis
Consolidation with downside bias
Resistance
1.6879 - 2009 high (Nov)
1.6842 - Last Thur's high
1.6819 - Y'day's high
Support
1.6771 - Last Fri's low
1.6749 - Last Tue's high
1.6713 - Last Tue's NY sup
. GBP/USD - 1.6789 ... Although the pound traded with a steady tone at Mon
open y'day, broad-based buying of sterling helped price to ratchet higher fm
last Fri's 1.6771 low (Reuters) to intra-day peak of 1.6819 b4 coming off in NY
due to euro's weakness, cable later retreated to 1.6790, then 1.6786 today.
. Looking at the hourly and daily charts, as last week's 4-1/2 year high at
1.6842 high was accompanied by bearish divergences on the hourly indicators, sub
sequent retreat suggests a temporary top has been made n initial consolidation
with downside bias is seen, however, break of 1.6657 sup is needed to violate
recent series of higher lows n higher highs n signal the long-awaited correction
has taken place, then cable wud head twd 1.6554. On the upside, abv 1.6842 wud
extend MT upmove fm 1.4228 (2010 bottom) to 1.6879 (Nov 2009 high) n possibly
twd 1.6945, being 50% projection of the MT intermediate rise fm 1.5854-1.6823
measured fm 1.6460, bearish divergences on daily indicators shud cap price
below key res 1.7044 (Aug 2009 peak - reaction high fm 2009 low at 1.3500).
. Today, as long as 1.6819 holds, downside bias remains, below 1.6771 wud
yield weakness to 1.6747/49 n only abv 1.6819 may risk re-test of 1.6842.
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