Cable is running higher in anticipation of 'remain' vote victory. The result the pair is trading well above the inverse head and shoulder neckline seen on the daily chart at 1.4830. However, it is premature to call a bullish break here, given the daily close needs to be above 1.4830. Even if we do have a day end closing above 1.4830, it is slightly risky to...
Resistance – 1.4842, 1.4883, 1.4951 Support – 1.4770, 1.4739-1.47, 1.4636-1.4627 Pair is flirting with a larger falling trend line resistance (drawn from July 2014 high – Aug 2015 high). A weekly closing above the same would signal a major trend reversal and open doors for a break above 1.50 levels. However, caution is advised since markets...
Resistance – 1.4706, 1.4770-1.4782, 1.48 Support – 1.4642, 1.4616, 1.4540 Pair’s run up to a high of 1.4782 followed by a fall back to below previous high of 1.4770, trend line (black) level and 200 day sma led to formation of bearish pinbar candle on the daily chart. The spot has inched higher in early Europe to trade around 1.4690 and is looking to...
Resistance – 1.4710, 1.4770, 1.4806 Support – 1.4686, 1.4662, 1.4636 Pair is trading above its daily 200-day moving average for the first time since November 2015. Failure to take out 1.4710 (black trend line resistance on daily) on hourly timeframe followed by a break below 200-MA on daily at 1.4686 would open doors for a re-test of 1.4636 (38.2% of...
On the weekly chart, we can see two falling trend lines - Blue and red. At 1.4660, the spot is back above blue trend line, but still needs to take out red rising trend line. Note that blue trend line was breached quite a few times on day end closing basis, but on the weekly closing basis the resistance stayed intact. However, the breakout may...
Referendum is just three days away and there is no point in trying to take sides on intraday basis. Instead it would be relatively easier to pick broader ranges in the pair and then go with the flow after breakouts or failed attempts. As of now the broader range on the daily chart is 50-MA (1.4441) and 200-MA (1.4689). On a larger scheme of things, the range...
Cable is all over the place and there is little clue on the charts about what could happen, given we are just one week away from referendum. Cable should continue to see erratic moves today. Resistance – 1.4302, 1.4330, 1.4348, 1.4413, 1.4432 Support – 1.4192, 1.4131, 1.4056, 1.4005, 1.39 Traders could simply go with the flow and this jotting down key...
Resistance – 1.4192, 1.4243, 1.4302 Support – 1.4114-1.4090, 1.4056, 1.4030 Pair’s repeated failure to sustain below 1.41 amid rising bottoms on hourly RSI indicates prices could see a corrective rally to 1.4192 (61.8% of 1.3835-1.4770). A violation there would expose 1.4243 (5-DMA). On the lower side, a failure to take out/near hourly 50-MA followed...
Cable is trading around 1.4110 levels. this is bad news for people expecting a recovery in the pair as a hourly closing below 1.4114 would indicate failure to bullish price-RSI divergence seen on the hourly chart. In the current scenario, a single hourly candle could result in a 100-pip drop. Hence, a 15-min closing below 1.4114 could be a sign the bullish...
UK data calendar boasts of monthly CPI release. The annualized figure is seen rising 0.4% y/y and 0.3% m/m. Core is seen rising 1.3% y/y. However, the improvement in the CPI release could be ignored as Cable is at the mercy of Brexit polls. Four polls released yesterday put UK on course of Brexit. The biggest blow was delivered by the Sun; UK’s highest selling...
Resistance – 1.4284, 1.4352, 1.4514, 1.4627/1.4635 Support – 1.42, 1.4159, 1.4079, 1.40 Five days ago I had written a post on GBP/USD titled “GBP/USD – Tale of two 23.6% Fibo levels” where I had talked about the pair being restricted to range of 1.4627 (23.6% of 1.7191-1.3835) and 1.4330 (23.6% of 1.5930-1.3835) for six weeks or so. Weekly highs above...
We have a nice strong channel from the 29.2.2016 and the price just touch the it. The demand zone with 50 % fib retracement can hold, and push price back to supply zone at 1.47000. So we can see the nice forming HH ( higher high ) and HL ( higher low ) formation. This we use to find a potential trend reversal. Have a nice week !
Resistance – 1.4482, 1.4556, 1.46 Support – 1.4436, 1.44, 1.4360 Pair’s failure to take out larger falling trend line resistance on Wednesday followed by a negative closing yesterday despite absence of fresh Brexit polls and a better-than-expected UK manufacturing and trade deficit data indicates the pair in on track to test daily 50-MA level of 1.4436 and...
Resistance - 1.4584, 1.4660, 1.47 Support - 1.4427, 1.4355, 1.43 As pointed out in previous day's morning newsletter, Cable struggled to take out larger falling trend line resistance and ended the day 1.45 levels. The failure to take out trend line resistance happened despite upbeat manufacturing data and absence of fresh Brexit polls. The daily RSI has...
UK manufacturing production for April jumped 2.3%, contradicting the drop in the activity as highlighted by manufacturing PMI released on May 3rd. In the wake of a strong data and amid absence of fresh Birexit polls, GBP/USD found bids around 1.4550 and jumped to a high of 1.4600, before retreating slightly to trade around 1.4580 at the time of writing. US...
Liquidity is thin and could get worst as we move closer to Brexit referendum. Off late, Sterling has stopped responding to UK economic data releases and Brexit polls appear to have taken the center stage. Resistance – 1.4590-46, 1.4660, 1.47 Support – 1.4530, 1.4468, 1.44 Cable currently trades around 1.4550 levels. The falling trend line (red) has...
On the left hand side, we have weekly chart and on the right hand side we have daily chart. On the weekly chart, we can see any break above the falling trend line level has been met with offers. Each time the pair failed, we have seen at least 500-600 pip fall before another attempt was made. Moreover, on a weekly closing basis, the trend line has never been...
Cable spiked to 1.4660 levels in Asia but the move lacked any clear fundamental trigger. Early explanations were that latest Brexit polls showed a minor lead for ‘remain’ vote. However, that alone is unlikely to have resulted in a blast higher. Consequently, we are forced to assume that the spike may have been due to a ‘fat finger’ in the market. The bird now...