WEEKLY GBP/USD TECHNICAL OUTLOOK
Last Update At 01 Sep 2014 00:05GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.6589
55 HR EMA
1.6586
Trend Hourly Chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
53
14 HR DMI
+ve
Daily Analysis
Consolidation b4 one more fall
Resistance
1.6680 - Last Wed's high
1.6657 - Aug 14 low
1.6615 - Last Thur's high
Support
1.6535 - Last Mon's low (NZ)
1.6523 - 50% r of 1.5854-1.7192
1.6460 - Mar 24 low
. GBP/USD - 1.6593... Despite a gap-down open to a 4-1/2 month trough of 1.6535 in NZ last Mon, cable swung wildly for rest of the week. Price staged a short-covering rebound to 1.6599 on Mon b4 falling back to 1.6537 at Wed open but only to climb to a 1-week high of 1.6615 Thur, then moved sideways on Fri.
. Looking at the bigger picture, although sterling finally found respite after enduring 6 weeks of losing streak n initial choppy trading abv 1.6535 is envisaged, a daily close abv 1.6657 (prev. low) is needed to confirm MT fall fm 2014 6-year peak at 1.7192 (Jul) has finally made a temporary low, then stronger gain to 1.6680 res wud be seen, a break there wud violate the recent series of lower highs n lower lows n yield corerction twd 1.6864 (50% r of 1.7192-1.6535).
Until then, as dlr is expected to rise vs its major peers, selling the pound in anticipation of resumption of MT downtrend to 1.6523 (50% r of LT intermediate rise fm 1.5854-1.7192) is still favoured, reckon daily up at 1.6460 (Mar low) may hold on 1st testing.
. Today, intra-day weakness in eur/usd shud weigh on cable n as long as 1.6615 holds, decline twd 1.6535 is likely n only abv 1.6555/57 risks 1.6580.
Recommended Content
Editors’ Picks
EUR/USD eases to near 1.0700 ahead of German inflation data
EUR/USD is paring gains to near 1.0700 in the European session on Monday. The pair stays supported by a softer US Dollar, courtesy of the USD/JPY sell-off and a risk-friendly market environment. Germany's inflation data is next in focus.
USD/JPY recovers after testing 154.50 on likely Japanese intervention
USD/JPY is recovering ground after sliding to 154.50 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Focus shifts to the US employment data and the Fed decision later this week.
Gold price holds steady above $2,335, bulls seem reluctant amid reduced Fed rate cut bets
Gold price (XAU/USD) attracts some buyers near the $2,320 area and turns positive for the third successive day on Monday, albeit the intraday uptick lacks bullish conviction.
Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing
Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.