Daily Technical and Trading Outlook -GBP/USD

Trend Daily Chart
Sideways

Daily Indicators
Neutral

21 HR EMA
1.2440

55 HR EMA
1.2458

Trend Hourly Chart
Near term down

Hourly Indicators
Bullish convergences

13 HR RSI
44

14 HR DMI
-ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.2524 - Last Fri's European low (now res)
1.2503 - Intra-day high (NZ)
1.2479 - Y'day's NY high

Support
1.2383 - Feb 13 low
1.2347 - Feb's low (7th)
1.2292 - 80.9% proj. of 1.2706-1.2347 fm 1.2582

• GBP/USD - 1.2430.. Cable met renewed selling at NZ open at 1.2503 Mon n tumbled to 1.2391 in Aust., then 1.2384 on renewed market uncertainty over Scot- tish referendum b4 staging a short covering rebound to 1.2479 in NY morning.

• Looking at the bigger picture, despite a 'flash crash' to 2016 Oct's 31- year bottom at 1.1491, subsequent erratic rise to 1.2775 in Dec confirms a major low has been made. Having said that, sterling's subsequent fall to 1.1983 in mid -Jan suggests 1st leg of correction has ended n sideways swings are in store. The spectacular rally (biggest 1-day gain in nearly 2 decades) to 1.2416 in mid- Jan, then 1.2706 at start of Feb signals said fall fm 1.2775 has ended there. Cable's fall fm 1.2706 to 1.2347 n then subsequent daily sideways swings suggest retracement twd 1.2259 (61.8% r) may be seen b4 rebound. A daily close abv 1.25 82 would signal pullback is over n may risk re-test of 1.2706 in March.

• Today, despite cable's selloff fm 1.2570 (Fri) to 1.2384 on Mon, subsequent rebound suggests price would 'gyrate' inside recent broad range of 1.2347 -1.2582, having said that, anticipated usd strength should pressure price but as hourly indicators has displayed 'bullish convergences', 1.2347 should hold.