Daily technical and trading outlook – GBP/USD
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Last Update At 17 Sep 2020 01:07GMT
Trend Daily Chart
Sideways
Daily Indicators
Turning down
21 HR EMA
1.2948
55 HR EMA
1.2918
Trend Hourly Chart
Sideways
Hourly Indicators
Turning down
13 HR RSI
47
14 HR DMI
-ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.3054 - Aug 24 low (now res)
1.3035 - Last Thur's high
1.3008 - Y'day's high (Reuters)
Support
1.2919 - Mon's high (now sup)
1.2876 - Y'day's low
1.2842 - Tue's hourly sup
GBP/USD - 1.2938... The British pound rallied fm 1.2878 in Europe to session highs at 1.3008 on UK's Internal Market Bill optimism b4 retreating sharply to 1.2938 in post-FOMC trading on usd's strength.
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 1.2812 (Jun) on broad-based usd's weakness suggests low has been made. Although price later rallied to an 8-month peak of 1.3482 on the 1st day in Sep, subsequent sharp decline n this week's break of Aug's 1.2982 low due to growing market jitters of a hard Brexit confirms top is made n price should head back to 1.2691 (38.2% r fm 1.1412) in late Sep/Oct. On the upside, only a daily close abv 1.3176 signals temp. low is made n may yield gain twd 1.3319 b4 down.
Today, as y'day's sharp retreat fm 1.3008 to 1.2938 signals recovery fm last Thur's 6-week trough at 1.2763 has ended there, downside bias remains for weakness to 1.2919. On the upside, only abv 1.3008 would risk stronger retracement of decline fm Sep's 8-month peak at 1.3482 twds 1.3054/56.
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