Last Update At14 January 2013 01:47GMT
Trend Daily Chart
Sideways
Daily Indicators
Neutral
21 HR EMA
1.6127
55 HR EMA
1.6110
Trend Hourly Chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
50
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.6283 - January 02 European support
1.6242 - January 03 European resistance
1.6182 - Friday's high
Support
1.6089 - Friday's low
1.6033 - Last Wednesday's NY high
1.5992 - Last Wednesday's low
- GBP/USD - 1.6125 ... Although the cable briefly dropped to 1.5992 (Wednesday), price rebounded to 1.6182 on Friday on the USD's broad-based weakness but active cross selling is strong (EUR/GBP rallied from 0.8105 to 0.8287) and capped the cable's upside at 1.6182 on Friday. Price retreated to 1.6089 before rebounding to 1.6142 in late NY.
- Last week's rebound from 1.5992 (Wednesday) to 1.6182 (Friday) suggests a corrective fall from 2013 January's 15-month high of 1.6380 has "possibly" made a low there. As long as said support holds, "choppy" consolidation with upside bias remains for a stronger gain to 1.6242, however, a daily close above 1.6307/10 is needed to confirm the correction is over and yield resumption of MT uptrend from 2012 Jan's low of 1.5234 for re-test of said resistance. Above would encourage for further gain to 1.6471, being 61.8% projection of 1.5270-1.6310 measured from 1.5828, later this month but anticipated bearish divergences on daily oscillators should prevent a strong rise above there and reckon daily resistance at 1.6618 (Aug 11' high) would remain intact.
- Today, buying cable on dips is still favoured. Only a breach of 1.5992 would risk stronger correction toward 1.5956 (38.2% r of 1.5270-1.6380) before up.
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