Daily technical and trading outlook – GBP/USD
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Last Update At 17 Jun 2021 01:25GMT
Trend daily chart
Sideways
Daily Indicators
Bearish divergences
21 HR EMA
1.4041
55 HR EMA
1.4073
Trend hourly chart
Down
Hourly Indicators
Oversold
13 HR RSI
25
14 HR DMI
-ve
Daily analysis
Resumption of recent decline.
Resistance
1.4132 - Wed's high.
1.4069 - Mon's low (now res).
1.4035 - Tue's low (now res).
Support
1.3960 - 50% r of 1.3670-1.4250.
1.3919 - Hourly sup.
1.3892 - May 07 NY low.
GBP/USD - 1.3985.. Although cable caught a bid in Asia Wed n ratcheted higher fm 1.4077 to 1.4132 at NY open on cross buying in sterling, price later tumbled to a 5-week low of 1.3983 after Fed's hawkish tilt, then 1.3972 today.
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, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Last week's marginal gain to a 3-year peak of 1.4250 signals said upmove has resumed n as long as 1.4006 holds, price would head to 1.4308, 'bearish divergences' on daily indicators would cap cable below 1.4500. Wed's daily close below 1.4006 signals top has been made n retracement to 1.3801, possibly twd 1.3670 would be seen.
Today, cable's intra-day marginal weakness to 1.3972 would pressure price to 1.3940 after consolidation, however, o/sold readings on hourly oscillators may keep sterling abv 1.3892. On the upside, only a daily close abv 1.4035 dampens bearishness n may risk 1.4069/71 but 1.4132 should hold.
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