FX.co ★ Weekly forecast and intraday analysis of GBP/USD for August 11-15, 2014

Weekly forecast for August 11-15, 2014

The cable has been making lower lows and lower highs for the last 5 weeks in a row. The prices are trading below the 20WSma. As of now, it made a low at 1.6771, held above the previous week's low in early Asia's session. On the downside, it has support at 1.6739 and 1.6699-1.6690. The cable will face huge selling pressure again, but only below 1.6690 towards 1.666 and 1.66.

Support: 1.6747-1.6738, 1.69-1.6690, 1.6661.

Resistance: 1.6842, 1.6893, 1.6922.

We recommend selling only below 1.6739 for a target at 1.67, 1.6690 and 1.666. Until the pair closes below 1.6890, selling on an up move will be favorable this week. On the down side, below 1.6739, strong selling will emerge again at 1.67, 1.6690 and 1.666.

Key monthly support levels- 1.6690 and 1.6648-1.6636.

The bulls close above 1.6890 as soon as they can, until that, 1.67-1.6693, 1.6648 and 1.6555 are open targets on the down side.

Intraday cmp 1.6777

The pair has been making a minor support base at 1.6767. The oversold oscillators in the H4 chart help the pair not to extend its fall to much lower levels. The prices are trading below the two key hourly moving averages. The pair has initial resistance at 1.6790, above this, it can fly up to 1.6828 and 1.6835. We can see a strong momentum once the pair is able to breach above 1.6835 for an extended upside target at 1.6860 and 1.6885 levels. The pair has support at 1.6767, below this, 1.6739.

Support: 1.6767, 1.6739, 1.67

Resistance: 1.6790, 1.6835, 1.6885

We recommend selling only below 1.6739

Buy above 1.6790, strong up move is only above 1.6835