|Market Comments||This is an obvious bullish for the Cable (GBP-USD) as you can see short-term to long-term indicators all showing upside except in the intermediate terms (weekly time frame) where there is contra direction between the MACD and Stochastic. In this case MACD most likely the winner and that will support further upsides.
The previous week 10 to 14 Feb 2014. The upside movement is the result of consistent economic data for the pound sterling. While on the other hands there is slight weakness in the dollars economic data.
Based on the economic calenders Forex Factory the GBP economic data still dominated the first 3 days of the week (Monday, Tuesday, Wednesday) and if there are all positives it could trigger another breakout to target the highest resistance at 1.69989.
Despite of the convincing direction of the technical indicators there are risks that we need to consider that could take the direction to reversal where correction is the most likely to first to take charge.
1. Sentiment indicators - This can be view by the open position ratios from various broker such as OANDA, DukasCopy, SaxoBank, Alpari, etc refer to Open Position Indicators. Based on the consensus from all brokers the crowds seems to prefer bearish at this time and as you can see at least 80% - 90% open position are selling.
2. The chart (Monthly time frame) is already reaching the most ideal position and correction is waiting to make ways at any moment of negative economic data.
3. What if the first 3 days of next week GBP data are weaker compare to the USD correction could make a massive free falls.
Saturday, February 15, 2014
GBP-USD Technical Analysis for Next Week (15 Feb 2014)
MACD Settings:- First EMA = 12 | Second EMA = 26 | Signal EMA = 9
Stochastic Settings:- Period = 5 | Average Period Fast = 7 | Average Period Full =7
Bollinger Bands Settings:- Average = 20 | Standard Deviation = 2
Date: 15 Feb 2014
Time: 4:44 PM (+8 GMT)