DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 17 Jan 2018 01:00GMT
Trend Daily Chart
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Daily Indicators
Bearish divergences
21 HR EMA
1.3786
55 HR EMA
1.3753
Trend Hourly Chart
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Hourly Indicators
Bearish divergences
13 HR RSI
70
14 HR DMI
+ve
Daily Analysis
Resumption of recent uptrend
Resistance
1.3893 - 80.9% proj. of 1.2589-1.3659 fm 1.3027
1.3875 - 61.8% proj. of 1.3538-1.3770 fm 1.3732
1.3836 - Asian fresh 1-1/2 year high
Support
1.3742 - Y'day's low
1.3725 - Mon's low
1.3693 - Fri's NY morning high (now sup)
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GBP/USD - 1.3826.. Sterling met renewed selling at 1.3806 in Asia y'day n dropped sharply in Europe on soft UK inflation data eased n hit session lows of 1.3742 in European morning b4 staging a bounce back to 1.3800 in late NY trade.
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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. Last Fri's rally abv 1.3659 to a 1-1/2 year high of 1.3744 confirms said uptrend has resumed after nearly 4 months of broad sideways swings n price is en route to 1.3893 (80.9% proj. of intermediate rise fm 1.2589-1.3659 measured fm 1.3027), however, 'bearish diver- gences' on the daily indicators should cap price below psychological res 1.4000. On the downside, only a weekly close below 1.3659 (prev. high, now sup) signals temporary top is made n may risk stronger retracement twd 1.3458.
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Today, cable's intra-day break abv Mon's 1.3820 high on renewed U.S. govt. shutdown concerns confirms recent upmove has resumed, however, 'bearish divergences' on hourly indicators would prevemt strg gain n reckon 1.3875/85 woudl cap upside n bring correction. Below 1.3750/60 risks 1.3742, 1.3725.
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