Daily technical and trading outlook – GBP/USD
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Last Update At 21 Sep 2021 00:17GMT.
Trend daily chart
Sideways
Daily Indicators
Neutral
21 HR EMA
1.3675
55 HR EMA
1.3617
Trend hourly chart
Down
Hourly Indicators
Rising fm o/sold
13 HR RSI
41
14 HR DMI
-ve
Daily analysis
Consolidation with downside bias.
Resistance
1.3765 - Last Thur's low (now res).
1.3727 - Aug 08 low (now res).
1.3701 - Mon's Asian sup (now res).
Support
1.3647 - Mon's low.
1.3602 - Aug's low (20th).
1.3573 - Jul's low (20th).
GBP/USD - 1.3661.. Despite opening higher to 1.3753 in NZ on Mon, the pound retreated to 1.3701 in Asia. Intra-day decline accelerated in Europe on risk-off trade together with cross-selling in stg n tumbled to 1.3740 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 hit- ting a 3-year peak of 1.4250 on Jun 01, selloff to as low as 1.3753 in Jul con- firms long-awaited correction has occurred. Cable's rally to 1.3983 (Jul), then back down to 1.3602 in Aug n subsequent rally to 1.3913 last Tue suggests choppy trading abv 1.3573 would continue, abv 1.3913, 1.3983. Below 1.3602, 1.3573.
Today, cable's selloff to 1.3640 signals early rise fm Aug's 1.3602 low has ended at 1.3913 last Tue n re-test of this lvl is envisaged, bullish convergences on hourly oscillators would keep price abv 1.3573. Only a daily close abv 1.3727 dampens daily bearishness n risks stronger retracement gain twd 1.3765.
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