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.

AUD/USD holds above 0.70 as RBA hike becomes a done deal

The Aussie Dollar dives 0.10% versus the US Dollar as market sentiment deteriorates amid fading US-Iran peace hopes, pushing US bond yields higher while US equity markets fall. Also, price action remained subdued, ahead of the Reserve Bank of Australia monetary policy decision. The AUD/USD trades at 0.7016.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold tumbles below $4.150 as US bond yields, oil prices rise

Gold price falls to near $4,125 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising US Treasury yields and expectations of further Federal Reserve interest rate hikes sap demand for the non-yielding metal.

HBAR, QNT rally as AI safety and tokenized deposits fuel institutional momentum

Hedera (HBAR) and Quant (QNT) are among the crypto market’s strongest performers on Monday, as fresh developments around artificial intelligence (AI) and tokenized banking drive renewed institutional attention. HBAR briefly surged above $0.130 before settling around $0.123, gaining 30% over the past 24 hours.

The week ahead: A key moment for the global economy as threats rise

UK diesel hits a record, as economic concerns rise. The market expects an aggressive Fed rate hiking cycle, but is it necessary? Oil supply concerns ease, even as oil prices rise. What’s next for the AI trade.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.