Daily technical and trading outlook - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK

Last Update At 03 Jun 2020 00:59GMT

Trend Daily Chart
Sideways

Daily Indicators
Neutral

21 HR EMA
1.2541

55 HR EMA
1.2481

Trend Hourly Chart
Up

Hourly Indicators
Turning down

13 HR RSI
71

14 HR DMI
+ve

Daily Analysis
One more rise b4 down

Resistance
1.2726 - Feb's low (now res)
1.2644 - Apr 30 high
1.2604 - Hourly chart

Support
1.2525 - Tue's Asian high, now sup
1.2479 - Tue's low
1.2425 - Mon's European morning high (now res)

GBP/USD - 1.2597.. Although the pound dropped fm 1.2525 at Asian open to 1.2479 in Asia Tue, price erased its losses n rallied to session highs at 1.2575 in Europe on usd's weakness n Brexit optimism b4 retreating to 1.2528.

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 erra- tic fall n then selloff below said sup to a near 35-year trough at 1.1412 in mid -Mar due to safe-haven usd's demand following almost free fall in global stocks confirms LT fall fm 2007 26-year peak of 2.1162 (Nov) has resumed. Having said that, stg's strg rebound to 1.2575 y'day after early selloff fm Apr's peak at 1.2648 to a 7-week trough at 1.2075 in May suggests the pullback has ended n upside bias remains for re-test of 1.2648, break would head twd 1.2894. Only below 1.2296 indicates aforesaid recovery has ended n risks 1.2161.

Today, although y'day's rise to 1.2575 suggests upmove fm May's trough at 1.2075 remains in force n would head to 1.2610, minor 'bearish divergences' on hourly indicators should cap price below Apr's 1.2648 peak n yield correction. Below 1.2525/28 would head back to 1.2479/84 b4 prospect of rebound.

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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