[B]DAILY TECHNICAL OUTLOOK ON GBP/USD
Last Update At [/B]
18 Feb 2013 00:05GMT
Trend Daily Chart
Down
Daily Indicators
Falling
21 HR EMA
1.5505
55 HR EMA
1.5525
Trend Hourly Chart
Down
Hourly Indicators
Bullish convergences
13 HR RSI
39
14 HR DMI
-ve
Daily Analysis
One more fall b4 correction
Resistance
1.5630 - Jan’s 05 low
1.5572 - Last Tue’s low
1.5550 - Last Fri’s high
Support
1.5462 - Last Fris’ 6-1/2 month low
1.5417 - 100% proj. of 1.5845-1.5572 fm 1.5690
1.5393 - Jul 12 2012 low
GBP/USD - 1.5493… Cable continued its MT strg descent fm Jan’s 15-month peak at 1.6380 n had its biggest weekly drop since June last year. Price tumbled fm 1.5690 (Tue) to as low as 1.5462 Fri after Wed’s BoE’s quarterly inflation report which painted a ‘downbeat’ outlook on the U.K. economy.
Looking at the bigger picture, last week’s acceleration of aforesaid fall fm 1.6380 indicates a re-test of 2012 low at 1.5234 (Jan) is on the cards later this month, a weekly close below there wud yield further weakness twd ‘psychological’ obj. at 1.5000 in Mar, therefore, as daily technical indicators are still pointing hard down, suggesting selling the pound on rebound is the way to go. On the upside, only abv 1.5690 wud be the 1st signal a temporary low is finally in place n may risk stronger correction twd 1.5845 b4 MT downtrend resumes.
Today, despite Fri’s brief bounce fm a 6-1/2 month low of 1.5462 to 1.5543, weekend’s bearish comments by BoE’s Weale has pressured cable in Aust. n as long as 1.5543/50 res holds, weakness twd 1.5417 is likely but ‘bullish convergences’ on hourly indicatots shud keep price abv 1.5393 n bring strg recovery.
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