The bullish divergence on the hourly chart suggests the low set at 1.2816 is unlikely to be challenged today and a break above 1.2850 could see the spot test hourly 50-MA level of 1.2907 levels. The gains are likely to capped around 1.29, given the hourly 50-MA is sloping downwards. On the lower side, a daily close below 1.2789 (post Brexit low) would open...
We got many short opportunities in major downtrend direction. For adding to existing short positions on GBPUSD we re waiting for a new retracement back to the resistance area. BUT price must stay below area of 1.28500
The pair has been offered in Europe and US after UK PM Theresa May said she will invoke article 50 by March 2017. She also said that it could be a hard Brexit – meaning the country would retain the right to determine immigration against access to free markets. Consequently, Sterling is suffering across the globe. However, the reaction looks slightly irrational...
UK manufacturing PMI for the month of September is seen coming-in at 52.1 vs. August number of 53.3. The actual number is more likely to print around estimates as highlighted by CBI numbers released on September 22. Weaker Pound Boosts UK Manufacturing in September - CBI British manufacturing grew strongly in September and orders flowed in at an above-average...
Pair’s retreat from the descending trend line hurdle followed by a bearish break below rising trend line suggests the pair could breach key support area around 1.2940, in which case the spot could be offered to 1.2865 (Aug 15 low). On the higher side, only a daily close above 1.3032 (Descending trend line) hurdle would suggests bearish invalidation.
Pair’s retreat from the descending trend line hurdle of 1.3057 earlier today suggests the technical recovery from the low of 1.2916 may have run out of steam and given the short-term moving averages – 5-DMA and 10-DMA are still sloping downwards, the prices could revisit 1.2970 area before making another attempt at the descending trend line. Sellers are seen...
Pair’s rebound from sub-1.2950 area for the third straight day on Tuesday finally manages to secure a daily close above 1.30. This coupled with a minor retreat in Asian session today to 1.2991 followed by a recovery to 1.3015 suggests dips are likely to be bought into and the spot looks poised to test falling trend line resistance seen around 1.3075 levels. On...
Pair’s retreat from 1.3121 (yesterday’s high) to 1.2915 levels in the NY session indicates bears remain in control and a day end close below 1.2946 (Sep 21 low) would open doors for a re-test of the post Brexit low of 1.2789. In case, the day end close is above 1.2946, then the oversold nature of the intraday indicators could come into play on Monday and aid...
Pair’s retreat from the NY session high of 1.3121 to 1.3040 if followed by a break below 1.30 would suggest the retreat from the Sep 6 high of 1.3445 has resumed and could yield a move to 1.29 levels. On the other hand, a rebound from near 1.3040 amid the bullish crossover between hourly 50-MA and hourly 100-MA would increase the odds of the pair moving towards...
Bullish price RSI divergence seen on the hourly and 4-hour chart yesterday managed to push the GBP/USD pair well above 1.30. At the time of writing, the pair was trading around 1.3076. What’s next? Divergence on the intraday charts usually signal pull backs, while those on the daily/weekly chart signal reversal. We have not seen any divergence on the daily...
Pair’s inside day candle pattern followed by a bearish break below Friday’s low of 1.2994 and a drop to 1.2960 suggests the pair is likely to head towards August low of 1.2865 levels over the next few days. This is purely a chart based view and a dovish Fed could of course trigger correction.
Despite staging a rebound from the low of 1.2994 in Asia, the subsequent exhaustion near 1.3054 (23.6% of 1.3248-1.2994) suggests increased likelihood of a break below 1.3029 and a revisit to 1.2994 (Asian session low) – 1.1.2956 (Aug 9 low). Upticks are likely to be met with fresh offers unless prices see a day end close above 1.3121.
Pair’s bearish break from rising channel earlier this week if followed by breach of support at 1.3138 has opened doors for a revisit to and a possible break below 1.3059 (Aug 30 low) levels. The daily MACD has turned bearish, which adds credence to the bearish view. On the higher side, only a break above 1.3347 would signal short-term trend reversal.
Despite rebound from the low of 1.3138, the subsequent failure in Asia at the rising trend line resistance suggests a move below Asian session low of 1.3228 could yield a fresh drop to 50-DMA support of 1.3162. On a slightly larger scheme of things, bearish invalidation is seen only above 1.3347 (Sep 12 high). Macro data UK retail sales for the month of...
As noted in Friday’s update - GBP/USD – Bearish cloud cover & ‘J curve’ theory – the pair has dropped to 50-DMA. The pair clocked a low of 1.3138 and was trading around the 50-DMA level of 1.3154. What’s next? The spot appears on track to test 1.3059 (Aug 30 low) especially if the day end close is below 50-DMA level of 1.3154. Overall, the bearish mood is...
UK employment data and wage growth figure for the month of August and July are due for release today. The spot has breached rising trend line ahead of the data release and so has the daily RSI. This makes the pair extremely vulnerable to weak set of data release. Moreover, a weak data would pour cold water over the optimism that UK economy is holding up well...
Pair’s sharp drop to below 1.32 (and minor rising trend line level) adds credence to the bearish dark cloud cover formation noted last week and open doors for a retreat to 1.3059 (Aug 30 low). On the higher side, only a move back above 1.3347 (Sep 12 high) would signal bearish invalidation.
Despite the three-day losing streak and drop to 1.3235 earlier today, the pair retains bullish bias, given the rising trend line on the daily RSI and price chart has remained intact. A day end close today above 1.3279 (Aug 26 high) would add credence to the bullish view and open doors for a re look at 1.34 handle. On the downside, breach of rising trend line...