Daily GBP/USD technical outlook
Last Update At 05 Aug 2022 01:22GMT.
Trend daily chart
Sideways
Daily Indicators
Rising
21 HR EMA
1.2149
55 HR EMA
1.2159
Trend hourly chart
Sideways
Hourly Indicators
Neutral
13 HR RSI
46
14 HR DMI
-ve
Daily analysis
Choppy consolidation to continue.
Resistance
1.2245 - Last week's high (Thur).
1.2220 - Thur's high (Reuters).
1.2175 - Reaction high fm 1.2065.
Support
1.2100 - Wed's low.
1.2065 - This week's low (Thur).
1.2021 - Last Wed's low.
GBP/USD - 1.2140.. Cable swung wildly in post-BOE trading Thur. Although price moved sideways in European morning with a firm bias, price spiked to 1.22 20 after BOE's 0.5% rate hike n tanked broefly to 1.2065 b4 bouncing to 1.2175.
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 Feb suggests a major low is made. Having said that, cable's erratic fall to 1.2162 in Dec 2021 n then continued decline this year to a 2-year bottom at 1.1934 in mid-Jun n weakness to a 2-year trough of 1.1761 in mid-Jul signals correction fm 1.1412 over. Having said that, subsequent strg rise to 1.2293 Mon may head back twd 1.2332 but reckon 1.2406 should cap upside.
Today, cable's decline fm Mon's 1-month peak of 1.2293 to 1.2065 signals upmove fm Jul's2-year bottom at 1.1761 has made a top, subsequent bounce to 1.21 75 on usd's weakness would bring sideway swings ahead of key US NFP. Abv 1.2175 may head twd 1.2220, break, 1.2245. Below 1.2100 would re-test 1.2065, 1.2021.
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