Weekly technical outlook on major – GBP/USD
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Trend Daily Chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.2281
55 HR EMA
1.2327
Trend Hourly Chart
Near term down
Hourly Indicators
Rising fm o/s
13 HR RSI
34
14 HR DMI
-ve
Daily Analysis
Resumption of recent decline
Resistance
1.2395 - Last Fri's European high
1.2331 - Last Wed's low (now res)
1.2302 - Hourly chart
Support
1.2205 - Last Fri's low
1.2182 - Mar 27 NY low
1.2145 - Mar 27 European low
GBP/USD - 1.2225.. Despite staging a spectacular rally fm Mar's near 35- year trough of 1.1412 to 1.2485, cable swung widly last week below said res b4 tumbling on Fri fm 1.2410 to 1.2205 (NY) after record low U.K. services PMI.
On the bigger picture, despite cable's rally to 1.4377 in 2018 after a flash crash to 2016 31-year bottom at 1.1491 on Brexit worries, subsequent erratic fall n then selloff below said sup to a near 35-year trough at 1.1412 in mid -Mar due to usd's demand as safe-haven currency following nose dives in global stocks confirms LT fall fm 2007 26-year peak of 2.1162 (Nov) has resumed. Having said that, sterling's spectacular rally back to 1.2485 on active unwinding of long usd's positions in tandem with sharp rise in global stocks suggests temp. low has been made. Last week's selloff to 1.2205 (Fri) would yield weakness to 1.2075 (38.2% r fm 1.1412) after consolidation but 1.1948 (50% r) may hold.
Today, cable's break of 1.2241 sup (Tue low) to 1.2205 Fri signals fall fm 1.2485 has resumed n subsequent bounce in Y on short covering would yield initial choppy swings b4 another fall to 1.2155, 'bullish convergences' on hourly indicators would keep price abv 1.2100. Only abv 1.2331 risks 1.2395.
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