FX.co ★ Technical analysis of GBP/USD for July 30, 2014

The cable drifted to a monthly low. The US data was printed above expectations. The Consumer confidence index was printed at 90.9, from 86.4 in June. The cable has strong nearest support at 1.6862 (20WSma). After three days, the bears succeeded to close below 50DSma. The pair has weekly support at 1.6920 levels. The pair has weekly resistance at 1.6975 and 1.70 (38.2fib level).

Intra week

Support 1.6920 1.6880 1.6862

Resistance 1.6975 1.70

Intraday cmp 1.6949

The cable is trading below the hourly moving averages. It is trying to trade above the 35 HrDema in Asia's session. If a candle closes above 1.6952, it can move up to 1.6975 and 1.70 levels. We recommend to buy only above 1.70 levels. On the down side, it has support at 1.6934, 1.6920 and 1.6880 levels. The hourly RSI is indicating a minor positive divergence.

A day close above 1.6975, the near term will turn to positive.