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...
Resistance – 1.4444, 1.4479, 1.4514 Support – 1.4405, 1.4367, 1.4345-1.4330 A slight improvement in the UK international trade situation in March has not really helped Cable rally. The bird still stays below resistance at 1.4444. An upside break is needed if the pair has to test 1.4479-1.45 levels. Watch out for a failed attempt to take out 1.4444 as it could...
GBP/USD – Spikes to be viewed with caution Support – 1.4413, 1.4371, 1.4330 Resistance – 1.4444, 1.4471, 1.4536 Cable’s bearish break from the sideways range on Friday post US non-farm payrolls data reinforced bears; hence the currency could be met with offers. Failure to take out 1.4444 witnessed on the hourly chart now could trigger a break below 1.4413...
Chart - Hourly Chart Range - 1.4541 - 1.4443 Traders should wait for a breach of the trading range rather than attempt taking sides as of now. However, in our view, a possibility of the pair seeing an upside break from the trading range are high because - The downside has been capped around 1.4443 despite horrible UK PMI figures released this week. ...
The spot currently trades near 1.45 handle. Cable’s repeated rebound from the zone of 1.4460-1.4440 if followed by a break above hourly 50-MA levels could yield 1.4541 (23.6% of 1.3835-1.4770). Hourly 50-MA seen now at 1.4491 acted as a strong resistance yesterday. Plus, we also had a bearish 50-MA and 200-MA crossover earlier this week. Hence, break above...
Cable dropped to rising trend line support as expected earlier today and extended losses to 1.4613 before rising to 1.4635 levels. US session outlook Cable's breach of rising trend line has shifted balance in favor of bears. However, a rebound from support at 1.4617 followed by a break above 1.4635 could see the pair make an attempt at 1.4660 (rising trend...
Resistance - 1.4805, 1.4844, 1.49 Support - 1.4740, 1.47, 1.4650 GBP/USD extended gains in Europe to a high of 1.4764 levels following a bullish break from the larger falling trend line level on daily chart. The move is largely due to broad based USD selling, Markets haven't priced-in a slight uptick in the UK services PMI. Consequently, 1.48 could...