Daily technical and trading outlook – GBP/USD
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Trend Daily Chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.2913
55 HR EMA
1.2871
Trend Hourly Chart
Up
Hourly Indicators
Bearish divergences
13 HR RSI
60
14 HR DMI
+ve
Daily Analysis
Resumption of recent upmove
Resistance
1.3000 - Psychological res
1.2977 - Mar 11 high
1.2952 - Y'day's high
Support
1.2904 - Mon's high (now sup)
1.2888 - Y'day's hourly res (now sup)
1.2839 - Y'day's low
GBP/USD - 1.2881...Although the British pound dropped fm 1.2904 to session lows at 1.2839 in Europe, price erased its losses n rallied to a 4-1/2 month peak at 1.2952 in NY on cross-buying of stg vs euro b4 stabilising.
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 Fri's rally to 1.2803 suggests pullback has ended n upside bias remains for re-test of 1.2812 next, break would extend twd 1.2894 but reckon 1.3000 would hold. Only below 1.2644 signals top n risks 1.2480.
Today, although y'day's rise to 1.2952 signals MT upmove fm 1.1412 (Mar) remains in progress n gain to 1.2990/95 would be seen, reckon bearish divergences on hourly indicators would keep price below 1.3000/10 n yield correction. Only below 1.2904 wud risk stronger retracement to 1.2888, 1.2839.
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