The retreat from 1.2546 (today’s high) looks like a usual shakeout following a breakout. The spot breached the descending trend line yesterday. A rebound from around the trend line support appears likely, given the bullish daily RSI and upward sloping ST MAs – 5 & 10. On the downside, only a daily close below 1.2250 would revive bearishness.
Friday’s bullish hammer candle followed by a break above 1.2416 (Jan 17 high) in the late Asian session today suggests the spot could take out the sliding trend line resistance 1.2445. A daily close above 1.2445 would open the doors for a sustained rally to 1.2550 (downward sloping 100-DMA) and possibly to 1.26 levels. Bearish scenario – Failure at the trend...
Cable’s sharp recover from the low of 1.2034 on Wednesday followed by a move higher to 1.2250 levels today in the wake of an oversold monthly RSI suggests a potential for an extended rally to 1.24 handle. Also note, the area below 1.21 handle acted as a strong buyers’ zone throughout October 2016. The pair’s rebound from 1.2034 yesterday only adds credence to...
Despite Wednesday’s rally to 1.2350, the subsequent failure at 1.2363 earlier today followed by a drop to 1.2275 suggests the losses could be extended further to 1.22. A break below 1.22 could revive bearish mood and yield a sell-off to 1.2080 levels.
Despite the retreat from the Dec 30 high of 1.2388, the subsequent failure to dip below 5-DMA on Monday followed by a rebound from the 5-DMA today suggests the spot could have a re look at 1.2350-1.2388 levels… especially if the UK manufacturing PMI due in few minutes betters estimates. On the downside, only a daily close below 1.2245 (Dec 30 low) would open...
Pair failed at 1.2775 (confluence of 23.6% Fib retracement of 1.5019-1.2083 + 100-DMA) on Tuesday. Pair’s rejection at 1.2775 followed by a drop to 1.2646 in Asia suggests the bullish momentum may have run out of steam. Thus, the pair could witness sideways action in the range of 1.2775-1.26 levels in the short-term. The 5-DMA and 10-DMA are rising, while the...
GBP/USD pair is trading above the 1.25 mark in early Europe. Whether the pair extends gains or falls back below 1.25 as it has done so many times last month partly depends on the UK manufacturing PMI report. The data is expected to show the pace of expansion in the manufacturing activity remained unchanged at 54.3 in November. Export orders may play spoil...
Despite Monday’s failure at 50-DMA, the subsequent rebound from the rising trend line seen today, followed by a move to 1.2508 in the US session today… that too in the face of a strong US GDP data… suggests the pair is likely to extend gains to 1.26 levels within next 24 hours. On the lower side, only a daily close below the rising trend line would signal bullish...
Pair’s failure to take out the critical resistance of 1.25 on Tuesday if followed by a daily close below the rising trend line support today would signal a revisit to 1.2083. On the higher side, only a daily close above 1.25 would cheer up the bulls.
Despite the bullish MACD divergence, it is advisable to wait for a convincing break above 1.25, in which case the pair could rally to 1.2603 - 1.2750 levels. Another failure around 1.25 followed by a break below the previous week's low of 1.2302 would increase odds of a bearish break below 1.20 handle.
Comments – On the 4-hour chart, we see inverse head and shoulder failure, followed by a retreat to 1.2535 levels. Still, a potential for a revisit to neckline hurdle seen today at 1.2670 remain intact following the Friday’s bullish daily close.
The daily chart of the GBP/USD pair shows a Gravestone Doji candle… that too at 1.2404 (23.6% Fibo of 1.3445-1.2083). The doors have been opened for a Fed rate hike in December, thus the odds of the pair retreating to 1.2250 are high.
One look at the action in the GBP/USD during the Asian session would be enough to convince anyone that the British Pound is a new funding currency. Each time, Trump would take lead in the polls, the risk aversion would worsen and the British Pound would rally against the Dollar. On the other hand, Clinton lead would trigger risk-on moves and a drop in the British...
Resistance 1.25 1.2558 (Friday’s high) 1.26 Support 1.2389 (5-DMA) 1.2332 (Oct 19 high) 1.2298 (10-DM) Comments – Pair’s failure to hold gains above 1.25 followed by a rejection at the same level in the Asian session and a retreat to 1.2420 suggests the pair could extend losses to 5-DMA level of 1.2389, however, a rebound from the 5-DMA appears likely given the...
Resistance 1.25 1.26 1.2745 Support 1.2380 1.2342 (5-DMA) 1.2276 (10-DMA) Comments : Despite the bullish break on Thursday, the subsequent failure to take out 1.25 in the NY session and in Asia suggests the pair could revisit 1.2380 levels on the back of overbought 4-hr RSI. Overall, the spot appears on track to test 1.26 handle; especially if the US wage...
We have plotted Fib retracement from Brexit day high and post Brexit low (1.5019-1.2083) and from September high to post Brexit low (1.3445-1.2083). Note that I am not in favor of plotting retracement on the flash crash low since the exact low is still disputable. The descending trend line has been breached following the hawkish BOE. Furthermore, the offered...