Daily technical and trading outlook – GBP/USD
|Daily GBP/USD Technical Outlook
Last Update At 25 Mar 2021 00:55GMT
Trend daily chart
Down
Daily Indicators
Turning down
21 HR EMA
1.3707
55 HR EMA
1.3752
Trend hourly chart
Down
Hourly Indicators
Turning up
13 HR RSI
39
14 HR DMI
-ve
Daily analysis
Consolidation with downside bias
Resistance
1.3809 - Last Tue's low (now res).
1.3752 - Tue's European low (now res).
1.3733 - Wed's European high.
Support
1.3675 - Wed's 6-week low.
1.3643 - 38.2% r of 1.2676-1.4241.
1.3610 - Jan 26 low.
GBP/USD - 1.3694.. Cable went through a roller-coaster ride. Although price extended recent decline fm fell to a 6-week 1.3675 low at European open on usd's strength, the pair rebounded to 1.3733 but retreated to 1.3680 nr NY close.
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. Although cable rallied strongly to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 34-month peak at 1.4241 in late Feb, subsequent fall to 1.3675 Wed signals top is made n stronger retracement to 1.3636, then twd 1.3566 is envisaged. Only abv 1.4017 signals 1st leg of correction over, risks 1.4120/30.
Today, although cable's rebound fm 1.3675 suggests decline fm Feb's peak at 1.4241 has made a temp. low, as 1.3733 has capped recovery, consolidation with downside bias remains for weakness to 1.3645/50, 'bullish convergences' on hourly indicators should keep price abv 1.3610/20. Abv 1.3735/40, 1.3773.
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