Daily Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 04 May 2018 02:58GMT

Trend Daily Chart
Down

Daily Indicators
Falling

21 HR EMA
1.3580

55 HR EMA
1.3610

Trend Hourly Chart
Sideways

Hourly Indicators
Bullish convergences

13 HR RSI
45

14 HR DMI
-ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.3712 - Mar's low (now res)
1.3667 - Wed's high
1.3630 - Y'day's high

Support
1.3537 - Y'day's fresh 3-1/2 month low
1.3483 - 50% r of 1.2589-1.4377
1.3458 - 2018 low (Jan 11)

. GBP/USD - 1.3571.. Sterling fell for a 6th day on Thur. Despite initial narrow move in Asia n then a recovery to 1.3630 in Europe, price ratcheted lower to fresh 3-/2 month low of 1.3537 in NY after downbeat U.K. data b4 rebounding.

. Looking at the bigger picture, cable's strg ascent fm 2016 31-year bottom at 1.1491 caused by a 'flash crash' on Brexit worries to 1.3659 (Sep 2017) con- firms major low has been made. Despite rally in Jan after penetrating said res to 1.4346, then to post-Brexit fresh 21-month peak at 1.4377, subsequent selloff to 1.3747 last Fri, then Tue's break of Mar's low at 1.3712 to a 3-1/2 month low of 1.3537 Thur signals top has been made there n downside bias remains for weak- ness to 1.3483 (50% r of 1.2589-1.4377), then 1.3458 (2018 low in Jan), reckon 1.3300 (Dec 2017 low) should contain weakness. Therefore, selling cable on reco- very is the way to go n only a daily close abv 1.3808 risks 1.3965 b4 down.

. Today, despite resumption of downtrend to 1.3555, as this lvl was accom- panied by 'bullish convergences' on hourly indicators, subsequent recovery would bring consolidation b4 one more fall, reckon 1.3500 would hold. On the upside, a daily close abv 1.3667 confirms temp. low is made, risks 1.3712, then 1.3773.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3717
2. R2 1.3674
3. R1 1.3625
PP 1.3581
1. S1 1.3532
2. S2 1.3489
3. S3 1.344

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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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