DAILY GBP/USD TECHNICAL OUTLOOK
Trend Daily Chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.2913
55 HR EMA
1.2871
Trend Hourly Chart
Up
Hourly Indicators
Bearish divergences
13 HR RSI
60
14 HR DMI
+ve
Daily Analysis
Resumption of recent upmove
Resistance
1.3000 - Psychological res
1.2977 - Mar 11 high
1.2952 - Y'day's high
Support
1.2904 - Mon's high (now sup)
1.2888 - Y'day's hourly res (now sup)
1.2839 - Y'day's low
GBP/USD - 1.2881...Although the British pound dropped fm 1.2904 to session lows at 1.2839 in Europe, price erased its losses n rallied to a 4-1/2 month peak at 1.2952 in NY on cross-buying of stg vs euro b4 stabilising.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar on safe-haven usd's demand following almost free fall in global stocks, sterling strg rebound to as high as 1.2648 (Apr) on broad-based usd's weakness suggests low has been made. Although price fell to 1.2075 in May, price climbed to a near 3-month peak of 1.2812 in Jun. Although selloff to 1.2252 in late Jun signals MT uptrend fm 1.1412 has made a top, last Fri's rally to 1.2803 suggests pullback has ended n upside bias remains for re-test of 1.2812 next, break would extend twd 1.2894 but reckon 1.3000 would hold. Only below 1.2644 signals top n risks 1.2480.
Today, although y'day's rise to 1.2952 signals MT upmove fm 1.1412 (Mar) remains in progress n gain to 1.2990/95 would be seen, reckon bearish divergences on hourly indicators would keep price below 1.3000/10 n yield correction. Only below 1.2904 wud risk stronger retracement to 1.2888, 1.2839.
Interested in GBP/USD technicals? Check out the key levels
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 clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.