[B]WEEKLY GBP/USD TECHNICAL OUTLOOK[/B]
Last Update At [B]01 Sep 2014[/B] [I]00:05GMT[/I]
[B]Trend Daily Chart[/B]
[B]21 HR EMA [/B]
[B]55 HR EMA[/B]
[B]Trend Hourly Chart[/B]
[B]Hourly Indicators [/B]
[B]13 HR RSI [/B]
14 HR DMI[/B]
Consolidation b4 one more fall
1.6680 - Last Wed’s high
1.6657 - Aug 14 low
1.6615 - Last Thur’s high
1.6535 - Last Mon’s low (NZ)
1.6523 - 50% r of 1.5854-1.7192
1.6460 - Mar 24 low
. [B] GBP/USD [/B]- 1.6593… Despite a gap-down open to a 4-1/2 month trough of 1.6535 in NZ last Mon, cable swung wildly for rest of the week. Price staged a short-covering rebound to 1.6599 on Mon b4 falling back to 1.6537 at Wed open but only to climb to a 1-week high of 1.6615 Thur, then moved sideways on Fri.
. Looking at the bigger picture, although sterling finally found respite after enduring 6 weeks of losing streak n initial choppy trading abv 1.6535 is envisaged, a daily close abv 1.6657 (prev. low) is needed to confirm MT fall fm 2014 6-year peak at 1.7192 (Jul) has finally made a temporary low, then stronger gain to 1.6680 res wud be seen, a break there wud violate the recent series of lower highs n lower lows n yield corerction twd 1.6864 (50% r of 1.7192-1.6535).
Until then, as dlr is expected to rise vs its major peers, selling the pound in anticipation of resumption of MT downtrend to 1.6523 (50% r of LT intermediate rise fm 1.5854-1.7192) is still favoured, reckon daily up at 1.6460 (Mar low) may hold on 1st testing.
. Today, intra-day weakness in eur/usd shud weigh on cable n as long as 1.6615 holds, decline twd 1.6535 is likely n only abv 1.6555/57 risks 1.6580.