FX.co ★ Technical analysis of GBP/USD for July 31, 2014

The correction is going on, the pair fell below the 1.69 levels, but held the support at the 61.8 fib level. The pair recovered quickly from the 61.8 fib level and is trading above 1.69 levels. The pair is facing the initial strong resistance at 1.6923 (previous parallel low), above this, 1.6945 (50.0 fib level), 1.6975 (50DSma) and 1.70. In the daily chart, the daily momentum oscillators are indicating an oversold level.

Intraweek

Support 1.6880 1.6850 1.6792

Resistance 1.6923 1.6945 1.70

Until the pair closes below the 1.70 level, selling on a rise is the best strategy. On the down side, if the pair hits the 61.8 fib level, it can extend its fall up to 1.6845 (June 06, 2014) and 1.6785 (80 fib level).

Intraday cmp 1.6916

The cable is trading below the hourly moving averages. The pair has strong resistance at 1.6928 (35HrDema), 1.6955 (21HrSma) and 1.70 and support is at 1.69, 1.6889 and 1.6880.

Intraday- buy with sl 1.6880