DAILY TECHNICAL OUTLOOK ON GBP/USD
Update At 20 Feb 2014 00:51GMT

Trend Daily Chart
Up

Daily Indicators
Rising

21 HR EMA
1.6689

55 HR EMA
1.6693

Trend Hourly Chart
Sideways

Hourly Indicators
Neutral

13 HR RSI
44

14 HR DMI
-ve

Daily Analysis
Initial decline b4 rebound

Resistance
1.6823 - Mon's fresh 4-year high
1.6796 - Hourly chart
1.6742 - Tue's high

Support
1.6637 - Y'day's low
1.6600 - Hourly chart
1.6558 - Prev. res, now sup


. GBP/USD - 1.6678... Despite cable's brief rebound to 1.6734 in European
morning y'ay, price tumbled to 1.6660 after higher-than-expected U.K. unemploy-
ment rate n then to 1.6537 ahead of NY open. Later, cable recovered on short-
covering to 1.6725 in NY morning b4 falling again after FOMC minutes.

. Looking at the hourly n daily charts, y'day's firm breach of Tue's low
at 1.6655 to 1.6637 confirms corrective decline fm Mon's 4-year peak at 1.6823
has resumed n as long as res area at 1.6734/42 (y'day's high n Tue's high)
holds, downside bias remains for aforesaid fall to retrace MT uptrend fm 2013
bottom at 1.4814 (Jul) to extend marginally, however, as houly oscillators'
readings wud display 'bullish convergences' on next decline, reckon 1.6600/05,
hourly chart lvl n the 'minimum' 38.2% r of intermediate rise fm 1.6252-1.6823,
wud contain weakness n yield rebound later.

. In view of abv analysis, although selling cable on intra-day recovery is
favoured, day traders shud buy the pound on next decline. On the upside, a daily
close abv the said res area at 1.6724-42 wud be the 1st signal correction is
over n yield further gain twd 1.6796, then re-test of 1.623 next week.