Daily technical and trading outlook – GBP/USD

  Daily GBP/USD technical outlook

Last Update At 20 Aug 2021 01:05GMT.

Trend daily chart

Sideways

Daily Indicators

Turning down

21 HR EMA

1.3664

55 HR EMA

1.3708

Trend hourly chart

Down

Hourly Indicators

Rising fm o/s

13 HR RSI

32

14 HR DMI

-ve

Daily analysis

Resumption of recent decline.

Resistance

1.3726 - Tue's low (now res).
1.3698 - Hourly res.
1.3666 - Thur's European morning low (now res).

Support

1.3631 - Thur's 4-week low.
1.3592 - Jul 21 low.
1.3573 - Jul's 5-1/2 month low.

GBP/USD - 1.3639.. Cable remained under pressure y'day n fell fm 1.3758 (AUS) to 1.3713 in Asia. Intra-day decline accelerated in Europe due on usd's rally together with cross-selling in sterling, price tumbled to 1.3631 in 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 hit- ting a 3-year peak of 1.4250 on Jun 01, selloff to as low as 1.3753 in Jul con- firms long-awaited correction has occurred. Having said that, subsequent rally to 1.3983 in late Jul confirms low has been made but last week's decline would head back to 1.3590/00 but said 1.3573 low should hold.

Today, cable's weakness to Thur's 4-week 1.3631 low, then 1.3628 ahead of Asian open suggests re-test of Jul's 1.3573 bottom would be seen early next week. Expect 1.3698 to cap intra-day recovery n extend weakness to 1.3595/00 n only abv said res risks stronger retracement twd 1.3726 b4 another fall.