Daily technical and trading outlook – GBP/USD
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Last Update At 07 Jan 2022 00:30GMT.
Trend daily chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.3532
55 HR EMA
1.3530
Trend hourly chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
51
14 HR DMI
+ve
Daily analysis
Consolidation with downside bias.
Resistance
1.3633 - 50% proj. of 1.3431-1.3599 FM 1.3549.
1.3599 - Wed's 7-week high.
1.3558 - Thur's NY high.
Support
1.3491 - Thur's low.
1.3460 - Tue's low.
1.3431 - This week's low (Mon).
GBP/USD - 1.3534. Although cable met active selling ahead of Asian open on Thur FM 1.3559 (AUS) n tumbled to session lows of 1.3491, active cross-buying in sterling lifted price to 1.3558 in NY morning b4 moving sideways later.
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 1.3162 in Dec signals long-awaited correction has occurred. Having said that, cable's impressive rally to as high as 1.3550 last Fri confirms temporary low is made n daily close abv 1.3607 may head to 1.3708 but 1.3706 (50% r) should cap upside.
Today, cable's retreat FM Wed's 7-week 1.3599 high to 1.3491 suggests recent up move has possibly made a temp. top n consolidation is in store, below 1.3491 would add credence to this view n yield a stronger retrace. to 1.3460, reckon 1.3431 may hold. Only abv 1.3599 risks 1.3608 but 1.3633 should cap upside.
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