Weekly technical and trading outlook – GBP/USD
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Last Update At 15 Mar 2021 00:10GMT
Trend daily chart
Sideways
Daily Indicators
Turning down
21 HR EMA
1.3928
55 HR EMA
1.3930
Trend hourly chart
Sideways
Hourly Indicators
Rising fm o/s
13 HR RSI
50
14 HR DMI
+ve
Daily analysis
Choppy consolidation to continue
Resistance
1.4005 - Last Fri's high.
1.3977 - Thur's hourly chart.
1.3939 - Last Thur's NY low (now res).
Support
1.3864 - Last Fri's low.
1.3846 - Last Wed's low.
1.3801 - Last week's low (Mon).
GBP/USD - 1.3930.. Despite initial choppy swings abv Mar's 1.3779 low last week, price ratcheted higher fm 1.3801 (Mon) to 1.4005 on Fri due to active buying of sterling b4 retreating to 1.3864 in NY morning on profit taking.
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, sterling's rally to as high as 1.2812 (Jun) on broad-based usd's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Although cable rallied strongly to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 34-month peak at 1.4241 in late Feb, subsequent fall to 1.3779 in Mar signals top is made n stronger retracement to 1.3636, then twd 1.3566 is envisasaged. Only abv 1.4017 signals 1st leg of correction over, risks 1.4120/30.
Today, cable's erratic rise fm Mar's 1.3779 low to 1.4005 suggests recent fall fm Feb's 1.4241 peak has made a temp. low, however, Fri's weakness to 1.3864 n subsequent recovery to 1.3935 would bring sideways swings, below 1.3864 needed to head to 1.3846 but 1.3801 should hold. Abv 1.3977, 1.4005.
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