Analysis

Daily Technical Outlook on Major - GBP/USD

   DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 13 Feb 2019 00:16GMT

Trend Daily Chart
Up

Daily Indicators
Easing fm o/bot

21 HR EMA
1.2884

55 HR EMA
1.2893

Trend Hourly Chart
Down

Hourly Indicators
Bullish convergences

13 HR RSI
57

14 HR DMI
+ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.2997 - Last Thur's high
1.2955 - Y'day's high (NZ)
1.2909 - Y'day's high

Support
1.2854 - Last Thur's low
1.2833 - Y'day's low
1.2815 - 50% r of 1.2412-1.3218

  • GBP/USD - 1.2891.. Cable traded sideways in Asia on Tue n then staged a brief bounce to 1.2885 in Europe but only to tumble to 1.2833 on Brexit concerns. However, short covering lifted price to 1.2909 in NY afternoon b4 easing.

  • 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 in Apr confirms major low has been made. Despite subsequent selloff to 1.2662 (Aug) due to usd's strength, then weakness to a 20-month bottom of 1.2412 at the start of Dec and then gain to as high as 1.3218 in Jan due to Brexit optimism suggests said MT fall has ended. Having said that, subsequent selloff signals upmove fm 1.3412 has made a temporary top there instead n stronger retracement to 1.2815 (50% r) n possibly 1.2720 (61.8% r) would be seen. Only abv 1.3160 wud indicate pullback has ended instead n risk stronger gain twds 1.3200 later this month.

  • Today, cable's rebound after hitting a near 3-week trough at 1.2833 con firms recent fall fm Jan's 1.3218 peak has once again resumed, subsequent bounce n 'bullish convergences' on hourly indicators would bring consolidation b4 down but 1.2772 would hold. Only abv 1.2955 risks stronger retracement to 1.2997.

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