Daily Technical Outlook on Major - GBP/USD
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Last Update At 22 Jan 2019 00:00GM
Trend Daily Chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.2885
55 HR EMA
1.2890
Trend Hourly Chart
Near term down
Hourly Indicators
Oversold
13 HR RSI
53
14 HR DMI
+ve
Daily Analysis
Consolidation with downside bias
Resistance
1.3001 - Last Thur's 2-month high
1.2961 - Hourly chart
1.2927 - Last Fri's European morning low (now res)
Support
1.2825 - Last Wed's low
1.2775 - Jan 11 NY low
1.2705 - 50% r of 1.2412-1.3001
GBP/USD - 1.2891.. Although cable remained under pressure in Asia y'day n fell to 1.2831 in Europe, short covering lifted price to 1.2886. The pound later climbed to 1.2912 after UK PM May delivered her Brexit Plan B in the parliament.
. On the bigger picture, cable's rally fm 2016 31-year bottom at 1.1491 caused by a 'flash crash' on Brexit worries to 2018 21-month peak at 1.4377 (Apr) confirms major low has been made. Having said that, subsequent selloff to 1.2662 in Aug due to usd's strength, then weakness to a 20-month bottom of 1.24 77 in Dec suggests downside bias remains. Early yen-led selloff to 1.2412 on the 1st day of Jan suggests weakness to 1.2365 would be seen, 'bullish convergences' on daily indicators should keep price abv 1.2238 (61.8% proj. of 1.4377-1.2662 fm 1.3298) n bring correction. Last week's gain to 1.3001 signals temp. low is made n may bring retracement to 1.3072 may be seen. Below 1.2672 may yield 1.2530.
. Today, although cable's rise fm 1.2831 to 1.2912 suggests 1st leg of correction fm 1.3001 has ended n marginal gain twd 1.2927 can't be ruled out b4 pros pect of another fall twd 1.2775/76 (sup n 38% r of 1.2412-1.3001 respectively). Only abv 1.2961 suggests correction over n risk another rise to 1.2990/00.
Interested in GBPUSD technicals? Check out the key levels
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