DAILY GBP/USD TECHNICAL OUTLOOKLast Update At 22 Jan 2016 00:56GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.4192
55 HR EMA
1.4192
Trend Hourly Chart
Near term up
Hourly Indicators
Rising
13 HR RSI
60
14 HR DMI
+ve
Daily Analysis
Consolidation b4 with upside bias
Resistance
1.4340 - Tue's high
1.4280 - 38.2% r of 1.4604-1.4080
1.4250 - Y'day's high
Support
1.4204 - Y'day's Asian high (now sup)
1.4151 - Wed's NY low
1.4125 - Wed's low
. GBP/USD - 1.4222... Although cable met renewed selling in European morning n penetrated Wed's 1.4125 low to a fresh 7-year trough of 1.4080 at NY open, intra-day rally in euro triggered broad-based short-covering rally to 1.4250.
. On the bigger picture 1st, cable's cross-inspired break of previous 2015 low at 1.4566 (Apr) in early Dec n break of 2010 trough at 1.4228 to 1.4080 signals the major downtrend fm 1.7192 (2014 peak made in Jul) remains in progress n downside bias remains for further weakness twd 'psychological' target at 1.4000. Having said that, y'day's rally fm 1.4080 to as high as 1.4250 has formed a near-term hammer 'reversal' pattern on the daily candle stick chart, suggesting volatile consolidation with upside bias would be seen in the coming next few days n gain twd 1.4340 is now envisaged. Therefore, position players can buy the pound on dips for 1.4300 or sell on next leg of rally twd 1.4340 as only a daily close abv 1.4400 would bring stronger correction to 1.4500/10 in Feb.
. Today, as price has maintained a firm undertone in Asia n with hourly indicators are currently rising, buying cable on dips is the way t go n only below 1.4151 may risk 1.4125/30 b4 prospect of another rise next week.
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