Daily technical and trading outlook – GBP/USD
|
Last Update At 03 Aug 2021 00:18GMT.
Trend daily chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.3897
55 HR EMA
1.3907
Trend hourly chart
Near term down
Hourly Indicators
Bullish convergences
13 HR RSI
47
14 HR DMI
-ve
Daily analysis
Consolidation with downside bias.
Resistance
1.3983 - Last Fri's 1-month high.
1.3952 - 70.7% r of 1.3983-1.3876.
1.3932 - Mon's high.
Support
1.3876 - Mon's low.
1.3844 - Last Wed's low.
1.3767 - Last Tue's low.
GBP/USD - 1.3896.. Although cable fell one tick below Fri's 1.3888 in Asia n rebounded to 1.3932 on short-covering in Europe, the price ratcheted lower on cross-selling in sterling n later hit session lows of 1.3876 in 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, 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 selloff to as low as 1.3753 in Jul confirms a long-awaited correction has occurred. Having said that, a subsequent rally to as high as 1.3983 last Fri confirms low has been made n stronger retracement to 1.4069/74 can't be ruled out. Below 1.3844 signals top n heads to 1.3720/30.
Today, cable's break of 1.3888 sup signals corrective decline FM Fri's 1-month peak at 1.3983 remains in progress n weakness two 1.3844 is seen, 'bullish convergences' on hourly indicators would keep price abv 1.3821/26 n bring rebound. Only abv 1.3932/35 indicates correction is possibly over, 1.3960/70.
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.