15.10.201403:28 Forex Analysis & Reviews: Technical analysis of GBP/USD for October 15, 2014

Long-term review

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The weak British CPI data pushes the cable to an 11-month low. In yesterday's session, the cable fell below the 200Msma. The cable has the nearest parallel support at 1.5854 (November 2011 low), below this, 1.5725, the 61.8 fib level, will act as support. In case, if the pair closes below 1.6025 on a monthly basis, the medium- and longer-term view turns negative. On the downside the cable is aiming at 1.5725, 1.5500 and even 1.5300 levels. On the upper side, it has resistance at 1.6027 and 1.6159 on a monthly basis. For the near and medium term, until the cable closes below 1.6227, the cable is aiming at 1.5655 levels. In the daily chart, the pair closed below the descending triangle.

Support 1.5854, 1.5760-1.5725, 1.55

Resistance 1.5955, 1.6052, 1.6176

For an intraday view, the prices are closed far below the 12ema. In yesterday's session the pair closed below the descending triangle. The pair favors selling on every rise for a downside target at 1.5760 and 1.5725 in the near term. Safe selling will be triggered below 1.5854 levels.

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