04.08.201404:58 Forex Analysis & Reviews: Weekly forecast and an intraday analysis of GBP/USD for August 04-08, 2014

Long-term review

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Weekly view (August 04-08)

The cable took the support exactly at the parallel breakout level on Friday's session and today in Asia's session the cable held the previous day support. On the down side, it has a support zone at 1.6791-1.6785, below this, 1.6739 and 1.6699-1.6693 will act as strong support levels. After 15 months, for the first time the cable closed below the 20WSma. This week, it opened below the 20WSma. On the daily chart, the daily RSI and Stochastics are indicating an oversold level.

Support 1.6813 1.6786 1.6739

Resistance 1.6873 1.6923 1.6975-1.70

Positional - Sell below 1.6785 target 1.6740 and 1.67

Intraday cmp 1.6826

In the Asia's session, the pair is trading below the hourly moving averages, 21HrSma and 34HrSma. Until the prices close below these, the bears will have an upper hand. The pair has hourly support at 1.6817-1.6810, below this, 1.68, 1.6786 and 1.6770 will act a support zone. On the north side, it has resistance at 1.6844, 1.6862, 1.6889-1.68893 and 1.6927 levels.

Recommendation- cmp 1.6828

Safe to buy only above 1.6920

Risky traders can buy above 1.6862

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