ICmarkets

GBP/USD: Technical outlook and review.

FX:GBPUSD   British Pound/U.S. Dollar
96 0 3
Weekly Timeframe: For the past few weeks price has been trading around a weekly demand area coming in at 1.58533-1.60157. There has been some buying interest seen here, but nothing to get excited about. A break below here would likely attract further selling down to a weekly resistance flip level seen at 1.57166.

Daily Timeframe: The daily timeframe shows just why the buying interest on the weekly timeframe is not anything to get excited about. Price has been trading between a minor daily support flip level at 1.61609 and a combined daily demand/Quasimodo support area at 1.58533-1.59914/1.58934 since the 03/10/2014. It is only until one of these areas sees a positive close; we will then have some idea on future direction.

4hr Timeframe: The 4hr timeframe shows that ever since the market opened at 1.60733, the buyers have been in control. This buying interest has consequently consumed a nice-looking 4hr decision-point supply area seen at 1.61297-1.61066, which at first appeared to us as if price would likely continue higher up to around the combined 4hr supply/round number area at 1.62255-1.61910/1.62.

We however believe that this could indeed be a fakeout. The reasons why are as follows:

1. Price is trading near a proven area of daily resistance at 1.61609 (See daily timeframe ).
2. As already mentioned above, the buying interest out of the weekly demand area at 1.58533-1.60157 is not anything to get excited about which could indicate potential buying weakness (see the weekly timeframe ), and thus further selling could be seen.

With the above taken into consideration, we have decided to remain flat on this pair, and wait for further developments.

Buy/sell levels:

• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).

• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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