Daily technical and trading outlook – GBP/USD
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Last Update At 20 Jan 2021 00:51GMT
Trend Daily Chart
Sideways
Daily Indicators
Bearish divergences
21 HR EMA
1.3521
55 HR EMA
1.3510
Trend Hourly Chart
Near term up
Hourly Indicators
Getting o/bot
13 HR RSI
70
14 HR DMI
+ve
Daily Analysis
Choppy consolidation to continue
Resistance
1.3712 - Last Thur's fresh 2-1/2 year high
1.3680 - Last Thur's European morning high
1.3637 - Last Fri's European morning low (now res)
Support
1.3575 - Tue's low (AUS)
1.3521 - Mon's low
1.3505 - Last Tue's low
GBP/USD - 1.3642.. Cable extended Mon's rise at Asian open to 1.3614 in Asia y'day n despite intra-day pullback to 1.3585 in European morning, price ratcheted higher in NY to 1.3637 on usd's weakness due to risk-on sentiment.
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 free fall in global stocks, sterling's rally to as high as 1.28 12 (Jun) on broad-based usd's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Cable's rally to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then gain to a 2-1/2 year peak at 1.3712 last Thur suggests price may head to 1.3775 after consolidation, however, 'bearish divergences' on daily indicators would cap price below 1.3955. On the downside, below 1.3451 signals temp. top is made n risks 1.3305, 1.3135.
Today, Mon's rise fm 1.3521 to 1.3637 y'day confirms 1st leg of correct- ion fm last Thur's 1.3712 peak has ended n gain to 1.3670/80 can't be ruled out, overbought readings on hourly oscillators should cap price below 1.3712. Below 1.3600/04 signals recovery possibly over n yields 1.3585, break, 1.3540/50.
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