Daily Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 12 Oct 2018 00:27GMT

Trend Daily Chart
Sideways

Daily Indicators
Rising

21 HR EMA
1.3219

55 HR EMA
136188

Trend Hourly Chart
Up

Hourly Indicators
Bearish divergences

13 HR RSI
61

14 HR DMI
+ve

Daily Analysis
Consolidation b4 one more rise

Resistance
1.3363 - Jul 09 high
1.3298 - Sep high (20th)
1.3250 - Y'day's high

Support
1.3183 - Y'day's low
1.3136 - Wed's low
1.3106 - Tue's Asian high (now sup)

. GBP/USD - 1.3239.. Although cable rose to 1.3244 in Asia on usd's weakness on selloff in Asian stocks Thur, price dropped to 1.3183 in Europe b4 renewed buy ing emerged n sent price higher to 1.3250 in NY but later fell back to 1.3184.

. Looking at the bigger picture 1st, cable's rally fm 2016 31-year bottom at 1.1491 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 Aug's 13-1/2 month low at 1.2662 suggests top has been made. Having said that, cable's rise to Sep's 2-month high at 1.3298 indicates said fall fm 1.4377 has made a temp. low, however, last week's weakness to 1.2922 (Thur) signals at least the 1st leg of correction over n choppy side- ways trading is seen n would head to 1.2905 (61.8% r), break would extend fall to 1.2786 in Oct. On the upside, abv 1.3298 would risk stronger gain twd 1.3363.

. Today, as sterling has risen after intra-day retreat fm a 2-week high of 1.3250 to 1.3184, suggesting recent upmove would head to 1.3260/65, hourly indica tors would display 'bearish divergences' on next upmove, only abv Sep's peak at 1.3298 needed to head twd 1.3330 next week. Below 1.3180 risks 1.3135/36.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3329
2. R2 1.3288
3. R1 1.3261
PP 1.3221
1. S1 1.3194
2. S2 1.3154
3. S3 1.3126

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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