Daily technical and trading outlook – GBP/USD
|
Last Update At 10 Feb 2021 01:05GMT
Trend Daily Chart
Up
Daily Indicators
Bearish divergences
21 HR EMA
1.3794
55 HR EMA
1.3761
Trend Hourly Chart
Up
Hourly Indicators
Easing fm o/bot
13 HR RSI
70
14 HR DMI
+ve
Daily Analysis
Resumption of recent upmove
Resistance
1.3895 - 2020 Apr 26 low (now res)
1.3860 - 1.236 times ext. of 1.3521-1.3759 fm 1.3566
1.3820 - Tue's fresh 2-1/2 year high
Support
1.3789 - Tue's European high (now sup)
1.3759 - Jan 27 high (now sup)
1.3723 - Hourly sup
GBP/USD - 1.3811.. Cable maintained a firm undertone in Australia y'day n easily penetrated Jan's 2-1/2 year 1.3759 top to 1.3789 in Europe on continued usd's weakness. Price later climbed to session highs of 1.3820 in late NY.
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 2020 on safe-haven usd's demand following free fall in global stocks, sterling's rally to as high as 1.2812 (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 fresh 2-1/2 year peak at 1.3820 Tue suggests price would head twd 1.3895, 'bearrish divergences' on daily indicators may cap price below 1.4000. On the down- side, below 1.3566 signals temporary top is made n yields 1.3521, then 1.3451.
Today, as price is currently trading abv 21-hr n 55-hr emas, suggesting upside bias remains for further gain, as hourly oscillators' readings would be in o/bot territory, reckon 1.3895 would cap upside. Only a daily close below 1.3759 signals temp. top is made, risks retracement to 1.3700/10 b4 rebound.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.