Daily technical and trading outlook – GBP/USD

  Daily GBP/USD technical outlook

Last Update At 11 May 2021 01:11GMT

Trend daily chart

Up

Daily Indicators

Rising

21 HR EMA

1.4104

55 HR EMA

1.4040

Trend hourly chart

Up

Hourly Indicators

Turning down

13 HR RSI

58

14 HR DMI

+ve

Daily analysis

Resumption of recent upmove

Resistance

1.4241 - Feb 24 34-month high
1.4205 - 3 times ext. of 1.3980-1.4043 fm 1.4016
1.4158 - Mon's 10-week high

Support

1.4108 - Hourly sup
1.4096 - Mon's European morning high (now sup)
1.4044 - Mon's NZ high (now sup)

GBP/USD - 1.4115.. Cable extended its recent winning streak n gained fm 1.3980 to 1.4044 in NZ, price then rallied to a 10-week high of 1.4158 at NY open on w/end ruling UK Tory party election news b4 retreating to 1.4108.

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 2020 on safe-haven usd's demand following free fall in global stocks. Although cable rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb, subsequent fall to 1.36 70 in Apr signals top is made n stronger retracement to 1.3566 would be seen. Having said that, cable's rise abv prev. Apr's 1.3919 high to 1.4009 n then retreat to 1.3801 last Mon suggests volatile consolidation is in store, abv 1.4158 would head back twd 1.4182 but 1.4241 would hold. Below 1.3801, 1.3717.

Today, as y'day's rally to 1.4158 suggests correction fm Feb's 1.4241 peak has ended earlier at 1.3670 (Apr), subsequent retreat would bring choppy sideways swings b4 heading to 1.4205/10, as hourly indicators would display 'bearish divergences', 1.4241 should hold. Below 1.4044 signals top, 1.4016/20.