WEEKLY GBP/USD TECHNICAL OUTLOOKLast Update At 18 Oct 2015 23:20GMT
Trend Daily Chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.5448
55 HR EMA
1.5439
Trend Hourly Chart
Up
Hourly Indicators
Bearish divergences
13 HR RSI
42
14 HR DMI
-ve
Daily Analysis
Marginal rise b4 correction
Resistance
1.5568 - Sep 21 high
1.5518 - 50% r of 1.5930-1.5107
1.5509 - Last Thur's 3-week high
Support
1.5415 - Last Thur's low
1.5388 - Last Tue's high (now sup)
1.5338 - Hourly chart
. GBP/USD - 1.5436... Cable continued its recent winning streak n rallied to a 3-week high of 1.5507 Thur on active cross-buying in sterling after upbeat UK unemployment data. Price retreated in tandem with euro n traded sideways Fri.
. Let's look at the bigger picture 1st, the pound's rally fm Oct's 4-month bottom at 1.5107 to as high as 1.5509 last week confirms medium-term decline fm 2015 7-month peak at 1.5930 (Jun) has ended there n consolidation with upside bias remains for further headway to 1.5518 n possibly twd 1.5616 next week, being a 'natural' 50% r n 61.8% of foresaid fall. Having said that, as said Thur's high at 1.5509 was accompanied by prominent 'bearish divergences' on the hourly indicators, suggesting upside would falter below 1.5616 (61.8% r fm 1.5930). A daily close below 1.5388 (previous res, now sup) would confirm temporary top is made n yield stronger correction to 1.5291.
. Today, Fri's intra-day swings in Europe n NY session suggests further choppy consolidation below 1.5509 would continue, as long as indicated lvl at 1.5388 holds, prospect of one more rise twd 1.5518 remains, however, prominent
'bearish divergences' on hourly indicators should cap price below 1.5538/48.
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