Analysis

Daily Technical Outlook on Major - GBP/USD

   DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 15 Aug 2019 01:17GMT

Trend Daily Chart
Down

Daily Indicators
Oversold

21 HR EMA
1.2062

55 HR EMA
1.2067

Trend Hourly Chart
Sideways

Hourly Indicators
Neutral

13 HR RSI
44

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
1.2183 - Last Thur's high
1.2155 - Hourly res
1.2106 - Mon's high

Support
1.2042 - Tue's low
1.2015 - Mon's fresh 30-month trough
1.2000 - Psychological sup

GBP/USD - 1.2057..Although the British pound rose fm Asian low at 1.2045 to session highs at 1.2101 ahead of NY open on upbeat UK inflation, price then pared its gains n retreated sharply to 1.2051 near NY close on risk aversion.

On the bigger picture, cable's rally fm 2016 31-year bottom at 1.1491 due to a 'flash crash' on Brexit worries to 2018 21-month peak at 1.4377 in Apr confirms major low has been made. Sterling's fall to a 20-month bottom of 1.24 12 at the start of Jan suggests downside bias remains. Despite erratic rise to 1.3383 in Mar, cable break of Jun's 1.2507 low to a 30-month trough at 1.2080 at the start of Aug, then to 1.2015 on Mon suggests said fall fm 1.4377 would head to 1.1983 (2017 low in Jan), oversold readings on daily indicators may keep price abv 1.1823 (2.618 ext. of 1.3383-1.2866 fm 1.3177). On the upside , only abv 1.2190 suggests temp. low is finally made n risks 1.2300, then 1.2382.

Today, as y'day's retreat fm 1.2101 suggests recovery fm Mon's fresh 30- month trough at 1.2015 has ended at 1.2106 the same day, consolidation with downside bias remains for a re-test of said sup, however, 1.1990/00 should hold n yield correction. Only abv 1.2106 would risk stronger retrace. to 1.2155.

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