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Monday 28 October 2013

DAILY TECHNICAL OUTLOOK ON GBP/USD : Oct 29, 2013

DAILY TECHNICAL OUTLOOK ON GBP/USD
29 Oct 2013
01:38GMT

Trend Daily Chart : Up

Daily Indicators : Neutral

21 HR EMA : 1.6146

55 HR EMA : 1.6165

Trend Hourly Chart : Near term down

Hourly Indicators : Oversold

13 HR RSI : 29

14 HR DMI : -ve

Daily Analysis : Consolidation with downside bias

Resistance
1.6260 - Oct 01 high
1.6248 - Fri's high
1.6208 - Y'day's high

Support
1.6063 - Intra-day low
1.6033 - 61.8% r of 1.5894-1.6258
1.5955 - Sep 24 low

. GBP/USD - 1.6092... Despite y'day's initial rebound to 1.6208 in European
morning, the pound tumbled to session low at 1.6124 after the release of much
weaker-than-expected UK CBI distributive trades. However, price briefly
rebounded to 1.6165 in NY afternoon b4 tanking to 1.6063 at Asian open.

. Cable's sharp selloff suggests choppy trading below Oct's peak at 1.6260
wud continue with mild downside bias, however, as hourly oscillators are in
o/sold territory, sharp fall below 1.6033 (61.8% r of 1.5894-1.6258) is unlikely
to seen. Looking at the bigger picture, cable's rally fm 1.5894 (Oct 16 low) to
1.6258 (last Wed) signals correction fm 1.6260 has ended, however, present sharp
retreat suggests the aforesaid volatile price action is unfolding into a trian-
gle (a-leg at 1.5894, b-leg 1.6248 n present decline is the c-leg), if this view
holds true, then 2-3 more weeks of choppy sideways trading is in store.

. Today, we wud advise not to chase current move n only abv 1.6119 (prev.
sup) signals an intra-day low has been made n bring gain to 1.6136 (50% r of
1.6208-1.6063) whilst below 1.6033 wud extend nr term fall fm 1.6258 to 1.6033.

gbp

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