Daily technical and trading outlook – GBP/USD
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Last Update At 29 Jun 2021 00:16GMT
Trend daily chart
Sideways
Daily Indicators
Falling
21 HR EMA
1.3889
55 HR EMA
1.3902
Trend hourly chart
Sideways
Hourly Indicators
Falling
13 HR RSI
39
14 HR DMI
-ve
Daily analysis
Consolidation with a downside bias.
Resistance
1.4001 - Last Wed's high.
1.3986 - Last Thur's high.
1.3939 - Mon's high.
Support
1.3870 - Last Fri's low.
1.3832 - Jun 19 hourly res (now sup).
1.3787 - Jun's fresh 2-month low (21).
GBP/USD - 1.3874.. Although cable rose FM 1.3877 in Asia Mon to 1.3939 in Europe Mon after UK govt. said on track to lift COVID restrictions, the price quickly retreated n later ratcheted lower on selling in sterling to 1.3871.
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. Despite hitting a 3-year peak of 1.4250 on Jun 01, a sell off to as low as 1.3787 last Mon on surprise Fed's hawkish tilt signals long-awaited correction has occurred n would pressure price two chart obj. at 1.3670 after consolidation. Only a daily close abv 1.4001 risks a stronger gain to 1.4074 but reckon 1.4132 should cap upside.
Today, cable's weakness to 1.3871 in late NY suggests break of Fri's 1.3870 low would be forthcoming next, below signals correction fm Jun's 1.3787 low has ended, o/sold readings on hourly oscillators would keep price abv 1.3787. Only abv 1.3939 prolongs sideways swings n may risk 1.3963/73 b4 down.
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