Daily GBP/USD technical outlook
Last Update At 13 Jul 2021 00:09GMT
Trend daily chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.3877
55 HR EMA
1.3857
Trend hourly chart
Near term up
Hourly Indicators
Neutral
13 HR RSI
57
14 HR DMI
+ve
Daily analysis
Consolidation with upside bias.
Resistance
1.3986 - Jun 24 high.
1.3939 - Jun 28 high.
1.3911 - Mon's near 2-week high.
Support
1.3839 - Mon's low.
1.3825 - Hourly sup.
1.3797 - Last Thur's NY high (now sup).
GBP/USD - 1.3986.. Although cable briefly rose abv Fri's 1.3909 top to 1.3911 in Asia y'day, price fell on broad-based selling of sterling on UK re-opening amid rising Covid cases, price hit 1.3839 b4 reboundings to 1.3905 (NY).
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, price 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 suggests a major low is made. Despite hitting a 3-year peak of 1.4250 on Jun 01, sell off to as low as 1.3733 last Fri confirms long-awaited correction has occurred n would pressure price two chart obj. at 1.3670 after consolidation. Only a daily close abv 1.4001 signals 1st leg of correction over n risks stronger gain to 1.4074 but 1.4132 should cap upside.
Today, cable's rally abv 1.3898 (reaction high FM 1.3733) signals fall FM 2021 peak at 1.4250 (Jun) has made a temp. low n as long as 1.3839 holds, upside bias remains for gain to 1.3930 (38.2% fm 1.4250), 'bearish divergences' on hourly oscillators should cap price below 1.3986. Below 1.3839, 1.3797.
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