Daily Technical and Trading Outlook - GBP/USD

Trend Daily Chart
Up

Daily Indicators
Bearish divergences

21 HR EMA
1.2974

55 HR EMA
1.2982

Trend Hourly Chart
Sideways

Hourly Indicators
Falling

13 HR RSI
44

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
1.3089 - 50% proj. of 1.2500-1.2990 fm 1.2844
1.3048 - Last Thur's 7-1/2 month high
1.3000 - Y'day's European morning high

Support
1.2953 - Y'day's low
1.2933 - 70.7% r of 1.2888-1.3043
1.2888 - Last Thur's low

• GBP/USD - 1.2965.. Sterling remained under pressure ahead of Asian open Tue after news of fatal terrorist bombing in Manchester n dropped to session low at 1.2953 in Europe. Price spiked to 1.3035 in NY morning b4 falling to 1.2957.

• Looking at the bigger picture, despite cable's 'flash crash' to 2016 31- -year low of 1.1491 in Oct, subsequent rally to 1.2775 in Dec signals a major bottom is made. Sterling's rally abv previous 1.2990 high to a 7-1/2 month peak of 1.3048 last Thur confirms said MT upmove fm 1.1491 has resumed n is at least correcting MT intermediate fall fm 2016 peak of 1.5022 (Jun), further gain to 1.3089 (50% proj. of 1.2500-1.2990 measured fm 1.2844) would be seen. As long as 1.2888 (reaction low fm 1.3048 holds, further headway to 1.3147 may be seen this month, 'bearish divergences' on daily indicators should cap price at 1.3256 (50% r of 1.5022-1.1491). Only a daily close below 1.2888 risks 1.2844, then 1.2757.

• Today, despite Tue's brief jump to 1.3035, subsequent sharp fall to 1.29 57 in NY, then 1.2955 in Australia on Wed suggests further choppy trading below last Thur's 7-1/2 month peak at 1.3048 would continue with downside bias, antici pated o/sold readings on the hourly indicators should keep price abv 1.2888 sup.