Daily technical and trading outlook – GBP/USD
|
Last Update At 29 Jul 2021 00:55GMT.
Trend daily chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.3888
55 HR EMA
1.3859
Trend hourly chart
Up
Hourly Indicators
Bearish divergences
13 HR RSI
60
14 HR DMI
+ve
Daily analysis
Resumption of recent upmove.
Resistance
1.3991 - 61.8% r of 1.4250-1.3573.
1.3952 - 61.8% proj. of 1.3720-1.3895 fm 1.3844.
1.3911 - Jul's high (12th).
Support
1.3833 - Mon's high (now sup).
1.3767 - Tue's low.
1.3737 - Mon's low.
GBP/USD - 1.3904.. Cable went through a 'roller-coaster ride in hectic Wed's session. Price ratcheted lower FM 1.3895 in Europe to 1.3845 b4 recovering but later spiked down to 1.3844 in post-FOMC NY b4 jumping to 1.3910.
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, selloff to as low as 1.3733 in Jul confirms long-awaited correction has occurred n last Tue's fall to 1.3573 suggests a stronger retrace. of MT upmove to 1.3566 would be seen but 1.3451 may hold. Only a daily close abv 1.3911 signals 1st leg of correction over, risks 1.4001.
Today, Wed's gain to a 2-week 1.3910 high on USD's weakness due to Fed's dovish hold suggests recent rally FM 1.3573 to retrace MT fall FM 1.4250 would extend to 1.3952, 'bearish divergences' should cap price below 1.3991. Below 1.3844 any time signals temp. top is made, risks retracement two 1.3787 later.
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.