Daily Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 12 Jan 2018 00:37GMT

Trend Daily Chart
Sideways

Daily Indicators
Rising

21 HR EMA
1.3527

55 HR EMA
1.3525

Trend Hourly Chart
Near term up

Hourly Indicators
Rising

13 HR RSI
66

14 HR DMI
+ve

Daily Analysis
Consolidation with upside bias

Resistance
1.3659 - 2017 high (Sep)
1.3614 - Last Wed's 3-month high
1.3586 - Mon's high

Support
1.3504 - Tue's low
1.3482 - Wed's low
1.3458 - Y'day's 9-day low

GBP/USD - 1.3558.. Although cable remained under pressure in Asia on Thur n tumbled to a 9-day low of 1.3458 (Reuters) ahead of NY open, intra-day jump in the euro helped cable erase its losses n price later rallied to 1.3555 in NY.
On the bigger picture, cable's erratic rise after 'flash crash' to 2016 31-year bottom of 1.1491 in Oct to 1.2775 (Dec), then strg gain to Sep's 14- month peak at 1.3659 confirms a major low is made. Despite sterling's selloff to 1.3027 in early Oct, subsequent rally to 1.3550 in Dec, then 1.3614 last Wed suggests correction fm 1.3659 has ended n re-test of said res would be seen next . A break there would indicate MT upmove fm 1.1491 has finally resumed n would head twds 1.3776, being 1.618 times extension of 1.3040-1.3383 fm 1.3221. Having said that, last Wed's fall to 1.3495, then 1.3458 y'day would yield more choppy trading b4 moving higher. Only below 1.3458 risks 1.3428 but 1.3390 would hold.
Today, y'day's rally fm 1.3458 suggests correction fm 1.3614 has ended there n upside bias remains for gain to 1.3586, break would encourage for re- test of 1.3614 but abv needed to retain bullishness for further headway twd 2017 top at 1.3659. On the downside, only below 1.3500 risks another fall twd 1.3458.

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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