Daily technical and trading outlook – GBP/USD
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Trend Daily Chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.3063
55 HR EMA
1.3062
Trend Hourly Chart
Sideways
Hourly Indicators
Turning up
13 HR RSI
57
14 HR DMI
-ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.3170 - Fri's 4-1/2 month peak
1.3149 - Fri's hourly res
1.3113 - Mon's high
Support
1.3005 - Mon's low
1.2982 - Y'day's low
1.2945 - Last Thur's low
GBP/USD - 1.3081...The pound went through a roller-coaster ride. Despite trading edging up to 1.3108 in Europe, price dropped to session lows at 1.2982 at NY open. Later, the pair rebounded strongly to 1.3074 in NY on usd's weakness.
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 1.3170 signals said upmove would head to 1.3283 after consolidation. Only a daily close below 1.2945 would indicate a temporary top has been made, risk 1.2839 later this week.
Today, as y'day's strg rebound fm 1.2982 suggests 1st leg of correction fm Fri's 4-1/2 month peak at 1.3170 has ended there n upside bias remains, abv 1.3113 would extend to 1.3149 b4 prospect of a retreat later. Only below 1.3005 would revive bearishness for retracement to 1.2945.
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