Cable strengthened for fourth consecutive session yesterday after the data in the UK showed retail sales jumped more than expected in April. The BRC retail sales monitor had shown a sharp slowdown earlier this month, however, we had noted that unlike official data, it wasn’t seasonally adjusted. GBP/USD dropped to a low of 1.4332 (almost 23.6% of 1.5930-1.3835)...
Outlook on Cable remains bullish, given the bullish break from a larger falling trend line noted here Trapped between two trend lines - Red - Drawn from from Aug 25 high and Nov 2 high and extended Blue - Drawn from Sep 30 low and Nov 6 low and extended Unless there is a clear breach of either of two trend lines, it is advisable to stay on the...
Pair jumped to a high of 1.4665 following the release of a better-than-expected UK retail sales report. The spot now trades around 1.4652. Bulls are in control, although further gains need an hourly closing above 1.4636 (38.2% of 1.5930-1.3835), in which case 1.47 levels could be put to test. Meanwhile, strong support is seen at 1.46 and 1.4562 levels.
Falling Brexit risks and mixed UK employment and labor data released yesterday pushed GBP/USD pair to an intraday high of 1.4634 (just short of 1.4636 (38.2% of 5930-13835) before hawkish Fed minutes pushed the currency back to 1.4597 levels. Nevertheless, the daily closing at 1.4597 means a larger falling trend line drawn from Aug 25 high and Nov 2 high has...
Inverse head and shoulder breakout on hourly chart. However, bulls need to see if prices manage to stay above 1.4549! check out the previous update - At make or break level
Cable rebounded from 1.4303 to test 1.4480 levels as expected. The pair managed to cut through offers around 1.4480-1.45 and jump to a high of 1.4537 before retreating slightly to 1.4516 levels. Outlook - Inverse head and shoulder on hourly chart The neckline level is 1.4520. Breach of falling trend line on hourly + rebound seen today from trend line...
UK data released a few minutes ago was upbeat given the sharp spike in average hourly earnings including bonus. Exclusive of bonus, wage growth was slightly slower-than-expected. Meanwhile, jobless claims dropped as well. The small fall in the headline claimant count measure in April was dwarfed by the upward revision to the March figure, with 8,000 claimants...
Resistance – 1.4441, 1.4514, 1.4549 Support – 1.44, 1.4368, 1.4330 Cable’s breach of rising trend line on the 4-hr chart (that also includes a dip below support at 1.4441) has opened doors for a re-test of 1.44 levels. Traders should watch out for a possible rebound from 1.44-1.4412 area as that could translate into a fresh rally towards 1.45...
Resistance - 1.45, 1.4549, 1.4577 Support - 1.4441, 1.44, 1.4344 Cable's retreat from European session high of 1.4524 on the back of a weaker rebound in UK core CPI followed by an upbeat US data** has increased risk of the pair falling to 1.4441 - 1.4432 (hourly 200-MA) level. An hourly closing below 1.4432 (hourly 200-MA) would shift risk in favor of the pair...
The hourly chart clearly shows 5th wave is in progress and could come to an end around 1.4533 (50% of 1.5230-1.3835) - 1.4549 (23.6% of 1.3835-1.4770). As said in the morning outlook , the uptick could be explained by expectations of a rebound in CPI release. Hence, I would reiterate that bulls would require a break above 1.4549 levels.
Resistance – 1.45, 1.4549, 1.46 Support – 1.4441, 1.4388, 1.4368 Cable’s rebound from 100-SMA yesterday followed by a break above 1.4441 indicates a short-term bottom is in place at 1.4332, although bullish move would gain credence in case resistance at 1.4549 is breached. Rejection at 1.45 followed by a break below 1.4441 (falling trend line support)...
Pattern - expanding channel on hourly Resistance - 1.4384, 1.4413, 1.4441 Support - 1.4330, 1.43, 1.4235 Pair's rebound from 1.4332 ran out of steam as prices neared expanding channel resistance. The spot now trades around 1.4360. Failure to sustain above 1.4368 (38.2% Fibo) after bearish break from sideways channel on Friday coupled with falling tops...
Sell below 1.4368 with stops above 1.4390 and for downside target of 1.4330-1.43
Daily Chart pattern - Rising trend line breached, RSI below 50.00 Support – 1.4333-1.4330, 1.43, 1.4275 Resistance – 1.4374, 1.44, 1.4441-1.4459 Cable’s breach of rising trend line on day end closing basis on Friday coupled with break in RSI below 50.00 indicates the bears are in control of the pair. This coupled with failure to sustain above...
Cable dropped to a low of 1.4379 before recovering back above 1.44 levels. Once again, a break below 1.44 ran into bids. Watch for a continued recovery and a possible break above 1.4435 as that would open doors for a ride to 1.4480-1.45 levels. On the downside, an hourly closing below 1.4387 is necessary to bring in fresh offers. European session outlook
Resistance – 1.4441, 1.4480, 1.4514 Support – 1.4413, 1.4387, 1.4354 Formation - Sideways action continues Pair clocked a low of 1.4423 in Asia before recovering slightly to trade around 1.4438 levels. Price action yesterday once again established around 1.44 as a strong support zone. Pair’s recovery from daily lows or a possible dip to...
Pair hit 1.4480 as expected in the European session outlook. Looking forward, the odds of a bullish break from the sideways channel on the hourly remain high given the repeated rebound from sub 1.44 levels since the start of the week. Bullish pace would gains more traction once prices see an hourly close above channel resistance now seen at 1.4490-1.45...
Hourly chart pattern – sideways channel Channel resistance – 1.4465 Channel support – 1.4395 A safe bet would be to wait for a breakout and play accordingly. However, if we look at the hourly chart, the odds of an upside break appears likely given the pair has finally managed to sustain above hourly 50-MA. This coupled with hourly RSI at 56.00 could...