FX.co ★ Weekly forecast and an intraday analysis of GBP/USD for July 28-August 01, 2014

Weekly view - (July 28- August 01)

The cable is testing its fate near the short-term strong support 50DSma. The pair hit the 50 DSma and well managed to close above that. In today's session, as of now the pair is trading above the 50DSma successfully. The daily Stochastics looks an oversold. The weekly support level is at 1.6945, 1.6920, and 1.6880 (61.8fib level). A day close below the 50DSma, the short-term trend turns to negative towards 1.6880, 1.6860, 1.68 and 1.6690 levels. The pair is trading below the 1.70 mark, though the UK's economic data was strong enough, but the US data is stronger than the UK's. This week, traders are eyeing Friday's Manufacturing PMI data.

Support 1.6945 1.6920 1.6880

Resistance 1.70 1.7060 1.71

Intraday cmp 1.6978

In Asia's session the pair is trading at 1.3428, holding above the Friday low 1.3420. It is trading below the hourly moving average, which is a highly bearish part. The pair has been facing strong resistance at 35HrDema for 12 hours. The pair was rejected at 35HrDema at 1.70 levels, above this, it has resistance at 1.7013 and 1.7036 levels. We can see mild strength above 1.70 and strong, only above 1.7040 levels.

Resistance 1.70 1.7015 1.7040

Support 1.6950 1.6945 1.6920

Sellers will mint the money, until the cable trades below 1.7040. The hourly RSI is indicating mild positive divergence.

Risky traders buy between 1.6960-1.6940, sl 1.6920.

Sell below 1.6920 for targets at 1.6880, 1.6860 and 1.68.