DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 17 Dec 2015 00:31GMT
Trend Daily Chart
Down
Daily Indicators
Turning up
21 HR EMA
1.5019
55 HR EMA
1.5062
Trend Hourly Chart
Down
Hourly Indicators
Bullish convergences
13 HR RSI
37
14 HR DMI
-ve
Daily Analysis
Consolidation with downside bias
Resistance
1.5130 - Tue's European low (now res)
1.5100 - Y'day's high
1.5058 - Y'day's Asian high
Support
1.4959 - 'day's low
1.4927 - 61.8% proj. of 1.5240-1.4959 fm 1.5100
1.4896 - Dec's 7-month low (2nd)
. GBP/USD - 1.4985... Cable came under renewed selling pressure in Europe y'day following market jitter over 'Brexit', cable fell to 1.4983 n briefly down to 1.4959 after Fed's quarter-point rate hike b4 rising briefly to 1.5100.
. On the bigger picture, although sterling early 3-legged strg rise fm Dec's 7-month trough at 1.4896 to as high as 1.5240 last Fri signals the MT downtrend fm 2015 peak at 1.5930 (Jun) has formed a temporary low there. Having said that, this week's sharp decline n y'day's weakness to 1.4959 suggests aforesaid correction fm 1.4896 has possibly ended, a daily close below last week's low at 1.4956 would add credence to this view, then re-test of 1.4896 would be seen next week, break would extend early decline fm 1.5930 to 1.4827 (80.9% r of 1.4566-1.5930) n possibly twd measured target at 1.4687 (100% proj. of 1.5930-1.5107 measured fm 1.5510) later this month. On the upside, only a daily close abv 1.5108 (prev. sup, now res) would risk stronger gain twd 1.5184/86.
. Today, in view of above bearish view on cable, selling the pound on recovery is the way to go, however, bullish convergences on hourly indicators suggest 1.4896 low would hold on 1st testing today.
_20151217060843.png "gbp")
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
Australian Dollar remains tepid after mixed Chinese data, Fedspeak awaited
The Australian Dollar extends its losses after mixed economic data from China on Friday. The Australian Dollar struggles as Australia’s 10-year bond yield has dropped to a monthly low of 4.2%. China’s Retail Sales increased for the consecutive 15th month but the softest gain in this sequence. The US Dollar has rebounded as the Fed remains cautious about inflation and potential rate cuts in 2024.
EUR/USD: Could FOMC Minutes provide fresh clues?
The EUR/USD pair advanced for a fourth consecutive week, comfortably trading around 1.0860 ahead of the close. Progress had been shallow, as the pair is up roughly 250 pips from the year low of 1.0600 posted mid-April.
Gold looks to extend uptrend once it confirms $2,400 as support
Gold price continued to push higher last week and rose above $2,400 on Friday, gaining nearly 2% for the week. Investors will continue to scrutinize comments from Fed officials this week and look for fresh hints on the timing of the policy pivot in the minutes of the April 30-May 1 meeting.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.