Monday, July 14, 2014

DAILY FORECAST FOR GBPUSD

INTRADAY CHART
BIAS: While 1.7124-36 caps we should see losses to 1.7070-80 en route 1.7045-50

Resistance: 1.7124-36 1.7150 1.7178 1.7202
Support: 1.7098 1.7070-80 1.7045-50 1.7027

MAIN ANALYSIS: Preferred is the bearish outlook which, should see the 1.4124-36 area cap for losses tp 1.74070-80 for a correction of around 5-10 points before losses extend to the (estimated) 1.7045-50 area. This should provoke a further correction higher. 

COUNTER ANALYSIS: The more bullish outlook would suggest not only a break above 1.7140 that we could then retest the 1.7167-78 highs but probably 1.7202. This appears illogical but note momentum as the 1.7202 target is seen. If momentum is still bullish then we'll see follow through higher to 1.7256 at least. However, the higher projections area vague.

MEDIUM TERM ANALYSIS:
14th July: Continued ratcheting lower is more indicative of a correction lower. This needs to hold below 1.7140-50 to maintain losses below 1.7098 and to 1.7045-50 and following a correction down to 1.7005-27. From here the rally to 1.7202 should be bseen...

A break below 1.6692 would provoke stronger follow-through...

Good trading
Ian Copsey

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