Good morning guys,
I can’t write much now, but i want you to take a look at the charts. (attached too)
I will update later.
Regards,
E. Lang
GBP/USD - 1
Cable’s fall from 1.9731 was contained at 1.9457 and continues to recover today. Break of 1.9542 support turned resistance indicate an intraday low is formed and further consolidation will continue, but upside is expected to be limited by 1.9600 resistance and bring another fall. Below 1.9457 will indicate decline has resumed for next downside target of 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237).
In the bigger picture, rising trend line support (1.8517 to 1.8834, now at 1.9574) was taken out, confirming that the rally from 1.8517 has already completed at 1.9913. Hence, as long as cable stays below 1.9731 resistance, the fall from 1.9913 should still be in force. Also, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed. Focus is now on 1.9237/61 cluster support.
Strong rebound from or above 1.9237/61 cluster support will indicate that the current fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067) before having a medium term reversal.
However, sustained break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.
2
The sterling pound dropped down last time since it couldn’t breach up the 1.6920s support level. this time the pound is restricted between 1.9490s support level and 1.960s resistance level. Hence the main trend today is neutral.
The general trend is up as far as 1.8850and 1.8460 remain intact, targets will be at 1.9858 and 2.0000.
The key resistance at 1.9850 and the key support at 1.8960.
Support: 1.9538, 1.9494, 1.9471, 1.9440, 1.9411
Resistance: 1.9557, 1.9591, 1.9623, 1.9654, 1.9686
3
This pair has tipped the support level 1.9470 last weekend bouncing back from the lower band of the daily Bollinger bends, with low volatility and no special market movers traders expect the range to be persistent in today’s trading session with minor gains from the GBP.
Comment: Dipping below 1.9500 but managing to recover this morning. These merely underlines the difficulty we are having at these historically very high levels but the tone is well bid nevertheless. Over the coming week we favour yet another upside test of 1.9700/1.9750.
Strategy: Buy at 1.9550; stop well below 1.9450. Short term target 1.9700/1.9750.