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GBP/USD: Technical Outlook

Published 04/01/2013, 02:42 AM
Updated 01/01/2017, 02:20 AM
EUR/USD
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GBP/USD
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MAR
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WEEKLY TECHNICAL OUTLOOK: GBP/USD
01 Apr 2013 01:25GMT
  • Trend Daily Chart

Down

  • Daily Indicators

Turning up

  • 21 HR EMA

1.5192

  • 55 HR EMA

1.5182

  • Trend Hourly Chart

Sideways

  • Hourly Indicators

Turning down

  • 13 HR RSI

39

  • Daily Analysis

Consolidation with a neutral bias

  • Resistance

1.5261 - Last Mon's high
1.5247 - Mar 22 high
1.5222 - Last Fri's high

  • Support

1.5150 - Last Thur's Asian morning high
1.5112 - Y'day's low
1.5092 - Wed's low

GBP/USD: 1.5180... Despite rising initially in tandem with EUR/USD to a one-month high of 1.5261 last Mon, cable came under renewed selling pressure n ratcheted lower to 1.5092 on Wed b4 rebounding to 1.5222 on Fri (Tokyo).

Looking at the daily chart, although cable's strg rebound fm Mar's 2-1/2 year trough at 1.4832 to as high as 1.5261 confirms the 3-legged MT downtrend fm 1.6747 (2011 peak) has made a temporary low there, subsequent choppy trading fm there signals initial range trading is in store n as long as said reaction high holds, MT decline wud resume later this month, a daily close below 1.5026 wud add credence to this view n yield re-test of 1.4832. In view of abv analysis, selling sterling on recovery is the way to go as only abv 1.5330 wud shift risk to upside n bring stronger correction to 1.5423, being a 'minimum' 38.2% r of the intermediate fall fm 1.6380-1.4832.

Today, although cable has edged lower in tandem with euro in Asia, below 1.5135 needed to indicate correction over n yield weakness twd 1.5092 whilst abv 1.5222 wud extend erratic rise fm 1.5092 twd 1.5261 but 1.5300 shud cap upside.
<span class=GBP/USD: Spot Price" title="gbp" width="800" height="600">

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