Daily technical and trading outlook – GBP/USD
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Trend Daily Chart
Sideways
Daily Indicators
Neutral
21 HR EMA
1.2588
55 HR EMA
1.2602
Trend Hourly Chart
Down
Hourly Indicators
Oversold
13 HR RSI
25
14 HR DMI
-ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.2669 - Last Thur's high
1.2638 - Y'day's NY res
1.2593 - Y'day's European sup (now res)
Support
1.2530 - Jul 02 high (now sup)
1.2509 - Last Wed's low
1.2463 - Last Tue's low
GBP/USD - 1.2549... Although cable rebounded fm 1.2622 at Asia to 1.2666 y'day, price dropped to 1.2593 in Europe b4 staging a recovery to 1.2638 in NY. Cable met renewed selling there n tumbled to 1.2551 on cross-selling in stg.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar on safe-haven usd's demand following almost free fall in global stocks, sterling strg rebound to as high as 1.2648 (Apr) on broad-based usd's weakness suggests low has been made. Although price fell to 1.2075 in May, price climbed to a near 3-month peak of 1.2812 in Jun. Although selloff to 1.2252 in late Jun signals MT uptrend fm 1.1412 has made a top, last week's strg gain to 1.2669 (Thur) suggests pullback has ended n a daily close abv 1.2687 would encourage for gain twd 1.2812 later this month. Only below 1.2509 prolongs choppy swings n yields 1.2439.
Today, although y'day's selloff fm 1.2666 to 1.2551 signals recent upmove has made a temp. top at 1.2669 last Thur n marginal weakness is seen, as hourly oscillators would be in o/sold territory, reckon 1.2509 would hold. Only above 1.2593 would indicate pullback has ended instead, 1.2638
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