Daily Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 18 Jul 2018 00:13GMT

Trend Daily Chart
Down

Daily Indicators
Bullish convergences

21 HR EMA
1.3157

55 HR EMA
1.3193

Trend Hourly Chart
Down

Hourly Indicators
Oversold

13 HR RSI
26

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
1.3217 - Mon's low (now res)
1.3180 - Houry chart
1.3145 - NY open low (now res)

Support
1.3070 - Y'day's low
1.3050 - Jun's 11-mth low
1.3000 - Psychological sup

. GBP/USD - 1.3110.. Although cable staged a recovery to 1.3269 in Europe, price quickly erased intra-day gain n tumbled to 1.3145 at NY open on renewed Brexit concerns. Later, cable fell to 1.3070 in NY after Fed Powell's tesimony.

. Looking at the bigger picture, cable's rally fm 2016 31-year bottom at 1.14 91 caused by a 'flash crash' on Brexit worries to 1.3659 (Sep 2017) confirms major low has been made. Despite rally in Jan to post-Brexit fresh 21-month peak at 1.4377 (Feb), subsequent selloff to 1.3205 in May n then an 11-month trough at 1.3050 signals decline fm 1.4377 would head to daily sup 1.3027 (Oct 2017 low) after consolidation, 'bullish convergences on daily indicators should keep price abv 1.2852 this month. On the upside, only abv this week's high at 1.3293 would prlong choppy sideways swings above 1.3050 n risk another rise twd 1.3363.

. Today, as y'day's selloff to 1.3070 confirms recovery fm Jun's 11-month bot tom at 1.3050 has ended last week at 1.3363 n re-test of said key sup is envisaged after consolidation, break would pressure price twd 'psychological' level at 1.3000, however, reckon 1.2950/55 should hold n only abv 1.3217 risks stronger gain to 1.3265/69 b4 prospect of another fall later this week.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3437
2. R2 1.3354
3. R1 1.3235
PP 1.3152
1. S1 1.3033
2. S2 1.295
3. S3 1.2832

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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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