DAILY TECHNICAL OUTLOOK ON GBP/USD
Last Update At 06 Jun 2014 00:52GMT
Trend Daily Chart
21 HR EMA
55 HR EMA
Trend Hourly Chart
Nr term up
Easing fm o/bot
13 HR RSI
14 HR DMI
Consolidation with upside bias
1.6883 - May 27 high
1.6845 - 38.2% r of 1.6997-1.6693
1.6825 - Y'day's high in NY
1.6782 - Tue's high (now sup)
1.6758 - 50% r of 1.6693-1.6825
1.6723 - Y'day's low
. GBP/USD - 1.6809... Despite cable's brief jump to 1.6793 in European morning due partly to cross-buying in sterling, price fell after BoE kept its monetary policy unchanged. Cable then briefly dropped to 1.6723 but only to rally in tandem with euro to session high of 1.6825 in NY afternoon.
. Looking at the hourly n daily charts, y'day close abv Tue's high of 1.6782 signals cable's decline fm May's near 5-year peak at 1.6997 (Reuters) has indeed made a temporary low at last Thur's 5-week trough at 1.6693 n as long as sup at 1.6758 (50% r fm 1.6693) holds, gain to 1.6845 n then 1.6883 is likely, being the 'natural' 50% r of 1.6997-1.6693 n May's 27 high respectively, however, as hourly oscillators wud be in o/bot territory on such a move, upside wud falter below pivotal res at 1.6923 (May 21 high) n yield retreat next week.
. In view of abv analysis, buying cable on dips in anticipated of further gain to 1.6860/70 is favoured today but profit shud be taken on upmove. On the downside, only below 1.6723 wud suggest aforesaid correction fm 1.6693 is over n shift risk to the downside for re-test of 1.6693, however, this move is unlikely to be seen today.