[B]DAILY GBP/USD TECHNICAL OUTLOOK[/B]
Last Update At [B]24 Nov 2014[/B] [I]23:59GM[/I]T
[B]Trend Daily Chart [/B]
[B]21 HR EMA[/B]
[B]55 HR EMA[/B]
[B]Trend Hourly Chart [/B]
[B]13 HR RSI[/B]
[B]14 HR DMI[/B]
Consolidation with mild downside bias
1.5790 - Nov 07 low
1.5768 - 50% r of 1.5945-1.5590
1.5737 - Last Mon’s n Thur’s high
1.5672 - Y’day’s NY hourly sup
1.5626 - Last Fri’s low
1.5590 - Last Wed’s fresh 14-mth low
. [B]GBP/USD[/B] - 1.5695 … Despite opening lower to 1.5633 in New Zealand on Mon, the British pound rebounded to 1.5673 at European open, however, price briefly retreated to 1.5629 in tandem with eur/usd before rising to 1.5694 in NY morning. Cable later climbed to session high of 1.5715 b4 easing.
. Y’day’s strg rebound fm 1.5630 to 1.5715 suggests ‘choppy’ trading abv last Wed’s 14-month trough of 1.5590 wud continue, however, as long as res at 1.5737 (last Mon’s n Thur’s high) holds, downside bias remains for MT downtrend fm Jul’s near 6-year peak at 1.7192 to resume after consolidation, yield re-test of 1.5590 sup later, however, break needed to extend weakness to 1.5560, then 1.5518 (being 50% & 61.8% proj. respectively of 1.5945-1.5590 measured fm 1.5737), however, a daily technical indicators wud display ‘bullish convergences’ on such move, reckon 1.5346 wud contain weakness, this is the ‘dynamic’ 61.8% r of entire LT rise fm 1.3500 (2009 multi-decade low) to 1.7192.
. Today, we’re cautiously holding a short position in anticipation of a retreat to 1.5630. On the upside, a daily close abv 1.5737 wud risk stronger retracement to 1.5818 (38.2% r of 1.6186-1.5590) b4 prospect of another decline.