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Daily technical and trading outlook – GBP/USD

AceTrader Team AceTrader

Daily GBP/USD technical outlook

Last Update At 26 Aug 2021 00:14GMT.

Trend daily chart

Sideways

Daily Indicators

Turning down

21 HR EMA

1.3743

55 HR EMA

1.3725

Trend hourly chart

Near term up.

Hourly Indicators

Bearish divergences.

13 HR RSI

14 HR DMI

+ve

Daily analysis

Consolidation b4 one more rise.

Resistance

1.3828 - Aug 16 low (now res).
1.3793 - 50% r of 1.3983-1.3602.
1.3786 - Last Wed's high (Wed).

Support

1.3736 - Hourly res (now sup).
1.3698 - Wed's low.
1.3662 - Mon's European high (now sup).

GBP/USD - 1.3767.. Cable continued to move in choppy fashion on Wed. Price edged lower to 1.3707 in Europe b4 rebounding to 1.3743 but only to drop to 1.3698 in NY b4 rising in tandem with eur/usd to session highs of 1.3767.

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, selloff to as low as 1.3753 in Jul confirms long-awaited correction has occurred. Although cable rallied back to 1.39 83 (Jul), last week's decline to 1.3602 would re-test 1.3573, break extends MT fall fm 1.4250 to 1.3460, then 1.3305/06 b4 prospect of a correction in Sep.

Today, upmove fm Fri's 1-month low at 1.3602 to 1.3767 Wed may head twd 1.3786, however, 'bearish divergences' on hourly indicators should cap price at 1.3800/10. Below 1.3732/36 would be 1st signal temp. top is made n head back to 1.3694/98, break would risk stronger retracement twd 1.3661.

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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