Weeky Technical Outlook on Major - GBP/USD
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Last Update At 18 Feb 2019 00:04GMT
Trend Daily Chart
Sideways
Daily Indicators
Falling
21 HR EMA
1.2862
55 HR EMA
1.2848
Trend Hourly Chart
Sideways
Hourly Indicators
Getting o/bot
13 HR RSI
75
14 HR DMI
+ve
Daily Analysis
Consolidation with upside bias
Resistance
1.2997 - Feb 07 high
1.2959 - Last Wed's high
1.2940 - Intra-day high (Reuters)
Support
1.2773 - Y'day's 1-month low
1.2720 - 61.8% r of 1.2412-1.3218
1.2670 - Jan 15 low
. GBP/USD - 1.2903.. Although cable remained on the back foot initially last week n fell to a near 1-month low of 1.2771 on Thur after PM May's Brexit plan was rejected by UK lawmakers, price rallied to 1.2940 (Reuters) in NZ.
. 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 to 1.2773 last week signals upmove fm 1.3412 has made a top there n stronger retracement to 1.2720 (61.8% r) would be seen but reckon 1.2672 may hold. Only abv 1.3000 wud indicate pullback has possibly ended instead n risk stronger gain twd 1.3160.
. Today, Fri's rally abv 1.2878 res to 1.2897 due to usd's broad-based weakness in NY afternoon on Fed Daly's dovish comments signals long-awaited correction of recent decline has occurred n as long as 1.2831 hold, gain twd 1.2959 is envisaged, o/bot readings on hourly indicators should cap price below res 1.2997.
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