Weekly technical and trading outlook – GBP/USD
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Last Update At 09 Aug 2021 02:04GMT.
Trend daily chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.3880
55 HR EMA
1.3896
Trend hourly chart
Down
Hourly Indicators
Rising fm o/s
13 HR RSI
32
14 HR DMI
-ve
Daily analysis
Consolidation with downside bias.
Resistance
1.3949 - Last Thur's high.
1.3932 - Last Fri's high.
1.3900 - Last Thur's low (now res).
Support
1.3862 - Last Fri's low.
1.3844 - Jul 28 low.
1.3826 - 38.2% r of 1.3573-1.3983.
GBP/USD - 1.3860.. Trading cable was tricky as price swung wildly. The pound fell to 1.3876 Mon n rebounded to 1.3957 (Wed), then dropped to 1.3873 b4 bouncings to 1.3949 in post-BOE Super Thur but later tumbled to 1.3862 on Fri.
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, a selloff to as low as 1.3753 in Jul confirms a long-awaited correction has occurred. Having said that, a subsequent rally to 1.3983 in late Jul confirms low has been made but last week's decline would head back to 1.3826 (38.2% r) but 1.3730 (61.8% r) may hold. Abv 1.3983, 1.4052.
Today, Fri's break of Thur's 1.3873 to an 8-day 1.3862 trough on USD's rally after robust U.S. yields confirms erratic fall FM 1.3893 would head to 1.3826, however, o/sold readings on hourly oscillators may keep price abv 1.3787. On the upside, only a daily close abv 1.3900 aborts, risks 1.3932/35.
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