Daily Technical Outlook on Major -GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 12 Oct 2017 00:18GMT

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
1.3215

55 HR EMA
1.3193

Trend Hourly Chart
Near term up

Hourly Indicators
Bearish divergences

13 HR RSI
69

14 HR DMI
+ve

Daily Analysis
Consoldiation b4 one more rise

Resistance
1.3344 - 50% r of 1.3659-1.3027
1.3292 - Last Wed's high
1.3250 - Last Thur's high

Support
1.3175 - Y'day's low
1.3121 - Mon's NZ high (now sup)
1.3075 - This week's low (Mon)

. GBP/USD - 1.3246.. Although cable retreated fm Asian high at 1.3223 to 1.3176 in Europe after Brexit comments fm UK FinMin Hammond n hit session low of 1.3175 in NY morning, price rallied to 1.3236 in post-Fed minutes NY afternoon.

. On the bigger picture 1st, although cable's spectacular rise after early 'flash crash' to 2016 31-year bottom of 1.1491 in Oct 2016 to 1.3068 in Aug this year, then to a 14-month peak of 1.3659 in Sep on expectation of BoE's rate hike confirms a major low has been made, subsequent selloff to 1.3027 last Fri said MT rise has made a top n downside bias remains for weakness twd 1.2945 (being 1.618 exten. of 1.3659-1.3343 fm 1.3456). Having said that, as daily indicators' readings will be in oversold territory of next decline, reckon 1.2774 (Aug low) would remain intact. Having said that, Wed's rally to 1.3236 signals temporary low is made n consolidation is seen n abv 1.3292 would extend gain twd 1.3350.

. Today, cable's resumption of upmove fm 1.3027 to 1.3236 Wed n intra-day break of this NY high confirms recent decline fm 1.3659 has indeed made a low there n consolidation with upside bias remains for gain twd next chart obj. at 1.3292, 'bearish divergences' on hourly indicators would cap price at 1.3300/10.

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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