DAILY TECHNICAL OUTLOOK ON GBP/USD
05 Mar 2013 01:03GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.5085
55 HR EMA
1.086
Trend Hourly Chart
Sideways
Hourly Indicators
Rising
13 HR RSI
69
14 HR DMI
+ve
Daily Analysis
Consolidation with mild upside bias
Resistance
1.5223 - Last Thur’s high
1.5186 - Last Fri’s high
1.5148 - Last Thur’s low
Support
1.5073 -Last Mon’s low
1.5000 - Y’day’s European low
1.4985 - Last Fri’s low
. GBP/USD - 1.5125… Despite cable’s brief but sharp drop fm 1.5060 to 1.5000 in Europe y’day after release of much weaker-than-expected U.K. construction PMI, short-covering lifted price to 1.5118 in late NY trade, price extended said y’day’s gain to 1.5142 in thin Australian trading this morning b4 easing.
. Although y’day’s strg rebound suggests MT decline fm 1.6747 (May 11’) has formed a temporary low at 1.4985 last Fri n several days of consolidation is in store, reckon res 1.5223 (last week’s high on Thur) wud cap present corrective rise fm yield resumption of aforesaid downtrend later this week or next week. Looking ahead, a breach of 1.5000 wud pressure cable twd 1.4867, this is 100% projection of 1.6747-1.5234 measured fm 1.6380. On the upside, only a daily close abv 1.5223 wud defer bearish scenario on sterling n risk stronger correction to 1.5415 n possibly twd 1.5518 (38.2% r of 1.5380-1.4985).
. Today, cable’s aforesaid rally fm last Fri’s 2-1/2 year low at 1.4985 is likely to extend further gain after consolidation, however, as hourly indicators wud be in o/bot territory on next rise, res at 1.5219/23 shud cap upside.
