Last Update At
18 January 2013 00:21GMT
Trend Daily Chart
Sideways
Daily Indicators
Oversold
21 HR EMA
1.6002
55 HR EMA
1.6018
Trend Hourly Chart
Sideways
Hourly Indicators
Bullish convergences
13 HR RSI
40
14 HR DMI
-ve
Daily Analysis
Consolidation with mild upside bias
Resistance
1.6102 - Tuesday's NY high
1.6080 - Wednesday's high
1.6040 - Yesterday's high
Support
1.5956 - Yesterday's low
1.5914 - October 23 low
1.5883 - November 21 low
GBP/USD - 1.5978 ... Despite the cable's brief fall from the Asian high at 1.6018 to 1.5991 yesterday, the pound rose in tandem with the euro to 1.6040 ahead of New York open but active cross selling of sterling versus euro pressured the pair below Wednesday's 1.5975 low to 1.5956 in U.S. morning before staging a recovery to 1.6010.
Although the cable extended recent decline from January's 15-month high of 1.6380 to 1.5956 yesterday, a subsequent rebound to 1.6010 in NY suggests a temporary low has "possibly" been made in consolidation with mild upside bias and would be seen for a minor gain to 1.6040 resistance. However, a break is needed to confirm and yield stronger retracement to 1.6096 (61.8% r of intermediate fall from 1.6182 to 1.5956).
On the downside, below 1.5956 would extend weakness to 1.5927/42 (November 27 low n 38.2% r of rise fm 2012 January's low 1.5234 to 1.6380, respectively). However, as hourly oscillators' readings have already displayed prominent bullish convergences, price should hold above 1.5914 (October 23 low) and bring a much-needed strong rebound.
Today, buying the cable on dips in anticipation of such move is cautiously advised. A daily close above 1.6040 would encourage for further headway toward 1.6102..png "Spot GBPUSD")