Daily technical and trading outlook – GBP/USD
|
Last Update At 21 Oct 2021 00:39GMT.
Trend daily chart
Sideways
Daily Indicators
Up
21 HR EMA
1.3810
55 HR EMA
1.3789
Trend hourly chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
60
14 HR DMI
+ve
Daily analysis
Consolidation b4 one more rise.
Resistance
1.3913 - Sep high (14th).
1.3853 - Sep 15 high.
1.3834 - Tue's 1-month high.
Support
1.3788 - Wed's Asian low.
1.3743 - Wed's low.
1.3710 - Mon's low.
GBP/USD - 1.3822.. Trading cable proved to be tricky in Wed's roller- coaster session. Although selling interest at 1.3814 in Asia knocked price to 1.3743 after soft UK inflation data, sterling later rallied to 1.3834 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. Although price tumbled to a 9-month trough of 1.3412 in late Sep, subsequent rally to as high as 1.3834y'day suggest low is made, a daily close abv 1.3834 would head twd 1.3930 (61.8% r).
Today, Wed's rebound from 1.3743 to 1.3834 due to renewed usd's weakness on risk sentiment suggests recent rise from 1.3412 would head to 1.3885/95, 'bearish divergences' on hourly indicators should cap price below Sep's 1.3913 peak. A firm break of 1.3773 signals top is made, yields 1.3743, then 1.3710.
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.