Support 1.2285 (monthly Fib pivot + weekly 5-MA) 1.2221 (previous day’s low) 1.2083 (Oct 25 low) Resistance 1.2360 (falling trend line resistance) 1.2534 (4-hr 200-MA) 1.2694 (10-DMA) Comments: Pound stands to gain if BOE meets market expectations The BOE has been likely to confirm what the market already knows - there is little room left for a further cut...
Resistance 1.2380 (trend line resistance) 1.25 (zero figure) 1.2559 (4-hr 200-MA) Support 1.2332 (Oct 19 high) 1.2234 (5-DMA + 10-DMA) 1.2114 (Oct 28 low) Comments – Despite the spike seen today, the bearish invalidation is still not seen…given the spot is still trading below the descending trend line resistance seen today at 1.2380. Only a daily close...
UK manufacturing PMI for the month of October is seen coming-in at 54.5 compared to September’s figure of 55.4. CBI data showed boost in exports · According to the CBI data released on October 24, manufacturing orders from foreign customers hit their highest level in two and a half years in October, with a reading of +8. · Furthermore, export orders were...
Failure at 1.2273 despite upbeat UK GDP figure and drop in BOE rate cut bets followed by a retreat and a daily close at 1.2163; its weakest in two weeks makes the pair extremely vulnerable to strong US GDP print. Speculation is rife that the US economy could have expanded at a fastest pace in 2 years in the second quarter. If the actually figure is above...
Pair’s rejection at 1.2273 and a subsequent retreat to 1.22 despite the better-than-expected UK Q3 GDP release suggests the bears remain in control and are likely to take the pair lower to 1.2080 levels. Meanwhile, only daily close above 1.23 levels would suggest bearish invalidation.
Ascending triangle forming on the GBPUSD 60 minute time frame.
Buyers are just refusing to step in even though the sell-off in the GBP/USD pair appears to have stalled. Dips below 1.22 are being bough into but the demand isn’t seen above 1.23 levels, thus gains have been limited. Overall, the price action is sure to raise caution, however, the weekly chart still suggests the potential for a corrective move exits. On the...
Buyers are just refusing to step in even though the sell-off in the GBP/USD pair appears to have stalled. Dips below 1.22 are being bough into but the demand isn’t seen above 1.23 levels, thus gains have been limited. Overall, the price action is sure to raise caution, however, the weekly chart still suggests the potential for a corrective move exits. On the...
Despite the retreat from the high of 1.2333, the odds of a bullish move remain intact given the bullish price RSI divergence on the intraday charts last week and the bullish inverted hammer candle on the daily. Furthermore, short-term moving averages – 5-DMA and 10-DMA appear to have bottomed out. Thus a rebound from 1.2240 appears likely and could yield a move...
Despite the rise from Monday’s low of 1.2136 to 1.2325 yesterday the subsequent failure in Asian session to hold above 10-DMA and a retreat to 1.2262 suggests the spot could make its way back to 1.22 levels today. On a slightly larger scheme of things, fresh sell-off is seen only below Oct 12 low of 1.2105.
Pair’s bullish inverted hammer candle formation on the daily chart lst week followed by a bullish break from falling channel and symmetrical triangle formation on the 4-hr chart suggests the prices are likely to test and possibly breach the 4-hr 50-MA resistance seen today at 1.2327. However, the 4-hr 50-MA is still sloping downwards; hence gains above 1.2327...
Wednesday’s inverted bullish hammer candle along with a bullish price RSI divergence on the 4-hour chart suggests a short-term bottom may be in place at Tuesday’s low of 1.2089. However, hawkish Yellen could push the pair back to 1.2089. In fact, the rate divergence could take the pair to falling channel support 1.19 levels… although such a move would happen...
Pair’s sharp rally from yesterday’s low of 1.2089 to as high as 1.2325 in Asia suggests a temporary low is in place and the spot could rise further to falling trend line resistance seen currently around 1.2440, especially since we have a bullish price RSI divergence on the 4-hr chart. On the 4-hr chart, both the 5-MA and 10-MA are still sloping onwards, hence...
Sterling crash was the result of a 'Fat Finger' move which coincided with FT story citing French President Hollande demanding 'Hard Brexit' so that precedent is set and other nations are not motivated to leave EU. However, Reuters suggests it was fat finger. We agree and also feel that Hollande is being unnecessarily blamed. This is because; talk of 'Hard...
On the monthly chart, we have plotted Fib extension levels on – (A) Nov 2007 high – Jan 2009 low – July 2014 high & (B) July 2014 high – Apr 2015 low – June 2015 high. The net result is we have two key support levels – 1.2590 (127.2% of B) and 1.2458 (61.8% of A). This is followed by 1.2217 (141.4% of B).
Cable’s recovery from the intraday low of 1.2686 followed by a breach of the falling trend line on the hourly chart amid recovery in the intraday indicators from the oversold territory suggests the hourly 50-MA level of 1.2776 could be put to test and may be breached for a test of 1.28 handle. However, caution is advised anywhere above 1.2776 as the hourly 50-MA...
The sell-off in the bird appears to have stalled around 1.2930 levels in line with the oversold intraday indicators. UK services PMI for September is likely to show the pace of expansion in the activity slowed somewhat, however, note that both manufacturing and construction PMI bettered estimates. Hence, the odds of a blow out services PMI number are high....
The pair respected the falling trend line resistance yesterday and since then has been on a way route to 31-year lows. The selling is so intense that technical correction does not last more than 20-pips.... this despite being oversold on 4-hr and hourly time frame. Anyone out there who intends to go long on Sterling should ideally wait for a breach of the...