GBP/USD
After CPI data touched the wires, the cable was beaten very badly. It hit the short- and medium-term moving averages and closed below them. The cable has got only one support level to test its fate in the short term at 1.6555 (50WSma). A weekly close below the 50WSma will generate another crack in the weekly chart, leading to the 1.6465, 1.6360, and even 1.60 levels. On the upside, the pair has a strong resistance at 1.6815 (20WSma).
A weekly close above 1.6815 turns the short-term trend positive. - It is a pending scenario.
A weekly close below 1.6555 turns the medium-term negative (up to December 2014). Pending
An intra-week is expected to close on August 20-22 above 1.6675, bulls will get micro strength. Pending
For an intra-week outlook, the pair has gained support at 1.66 (April 08, low). Below this, 1.6555 (April 04, low and 50WSma) and 1.6524 (50 fib level).
Intra-week outlook for August 20-22:
Key support is at 1.66, 1.6555, and 1.6524
Key resistance is at 1.6640, 1.6673, and 1.6738
Intraday- cmp 1.6620
As for today's session, the pair opened above yesterday's close and held the previous day low (1.6612) and made a low at 1.6614, as of now in the Pacific session. It has been making a minor support at 1.6612 for 11 hours; below this, the level of 1.66 will act as a major support. We recommend selling only below 1.66 with targets at the 1.6555 and 1.6524 levels. On the higher side, it has resistance at the 1.6655, 1.6665,1.6690, and 1.6710 levels. A h4 candle closure is to be above 1.6665. Minor pull back will take place towards 1.6690, 1.67, and 1.6710. Strong buy only above 1.6710.
Fresh sell only below 1.66
Risky buy above 1.6665
Strong pull back above 1.6710
