DAILY GBP/USD TECHNICAL OUTLOOK Last Update At 31 Oct 2014 00:40GMT
Trend Daily Chart
Sideways
Daily Indicators
Bullish convergences
21 HR EMA
1.6006
55 HR EMA
1.6039
Trend Hourly Chart
Dow
Hourly Indicators
Bullish convergences
13 HR RSI
43
14 HR DMI
-ve
Daily Analysis
Consolidatin b4 one more fall
Resistance
1.6103 - Y'day's NY morning low
1.6089 - Tue's low
1.6038 - Y'day's high
Support
1.5950 - Y'day's low
1.5875 - Oct 15 low
1.5820 - 61.8% proj. of 1.7192-1.6052 fm 1.6525
. GBP/USD - 1.5993..Cable weakened to 1.5967 in Asia on Thur n then 1.5762 in Europe on Thur following Wed's FOMC selloff. Despite a minor bounce to .6009, price later briefly tumbled to session lows of 1.5950 after release of robust U.S. GDP but short-covering lifted price to 1.6038 b4 easing.
. Let's look at the bigger picture 1st, Wed's sharp selloff to 1.6003 n then 1.5950 Thur suggests the correction fm Oct's 11-month low at 1.5875 has ended earlier at 1.6186 last Tue n consolidation with downside bias remains for weakness to 1.5940/50 sup area (Oct 16 n y'day's low respectively), a daily close below there wud signal MT downtrend fm Jul's near 6-year peak at 1.7192 has once again resumed n yield re-test of Oct's 11-month low at 1.5875 next week. Looking ahead, below 1.5875 wud send cable lower to 1.5820, this is 50% proj. of the entire fall fm 1.7192-1.6052 measured fm 1.6525. Therefore, selling cable on recovery is the way to go n only abv 1.6088/89 (prev. sup, now res) wud dampen present bearish scenario on cable.
. Today, we're holding a short position in anticipation of marginal fall but 'bullish convergences' on hourly indicators wud keep cable abv 1.5900/10.
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