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Home » Daily Technical Reports » GBP/USD Today Technical Report 02/05/2016

GBP/USD Today Technical Report 02/05/2016

GBPUSD traded in a consolidative manner on Friday, staying between the 1.4575 (S1) support line and the resistance hurdle of 1.4665 (R1). As long as the rate is trading above the short-term uptrend line taken from the low of the 18th of April, I would consider the near-term picture to be positive. I believe that a break above 1.4665 (R1) is possible to open the way for the next resistance zone of 1.4800 (R2), defined by the inside swing low of the 22nd of December. Nonetheless, looking at our short-term oscillators I see the likelihood for the forthcoming wave to be negative. The RSI slid after it hit resistance near its 70 line, while the MACD, although positive, stands below its trigger line and points south. What is more, there is negative divergence between both these indicators and the price action. Zooming out to the daily chart, I see that on the 25th of April, the rate emerged above the 80-day exponential moving average and on the 26th of the month, it broke above the 1.4500 key zone. In my view, this has turned the medium-term picture positive as well.

POUND 02

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