[B]DAILY TECHNICAL OUTLOOK ON GBP/USD
Last Update At [/B]
25 Feb 2013 00:25GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.5205
55 HR EMA
1.5252
Trend Hourly Chart
Down
Hourly Indicators
Bullish convergences
13 HR RSI
35
14 HR DMI
-ve
Daily Analysis
Initial recovery b4 one more fall
Resistance
1.5250 - Last Fri’s European morning low
1.5192 - Last Wed’s low
1.5143 - 38.2% r of 1.5262-1.5073
Support
1.5073 - Intra-day 2-1/2 year low (NZ)
1.5000 - Psychological
1.4949 - Jul 12 2010 low
GBP/USD - 1.51241… Cable continued its recent losing streak last week after penetrating 2012 low at 1.5234 Wed, price tumbled to a 2-1/2 year trough on Thur after dovish BoE’s minutes, price tanked to 1.5162 Fri after Moody’s cut U.K. credit rating n then a gap-down to 1.5073 in NZ/AUS earlier today.
Looking at the bigger picture, last week’s breach of said 2012 low at 1.5234 signals a ‘downside break’ of MT broad sideways range of 1.5234-1.6747 has taken place n the pound is now en route to ‘psychological’ 1.5000 lvl this week, then later twd 1.4867, this is 100% proj. of 1.6747-1.5234 measured fm 1.6380. A weekly close below 1.4867 wud paint a very bearish picture on cable n price shud weaken eventually twd 2010 trough at 1.4228 in Mar/Apr, so selling the British pound on any corrective rebound is the way to go.
Today, although short-term specs gave cable renewed bashing after Fri’s Moody’s action which took place near NY close, intra-day strg bounce fm 1.5073 on short covering suggests choppy trading is in store b4 re-test of this lvl but 1.5000/10 shud hold. Only abv 1.5192 signals temp. low is made, risks 1.5240/50.
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