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.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.