Daily Technical Outlook on Major - GBPUSD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 16 Oct 2018 00:06GMT

Trend Daily Chart
Sideways

Daily Indicators
Rising

21 HR EMA
1.3151

55 HR EMA
1.3158

Trend Hourly Chart
Sideways

Hourly Indicators
Neutral

13 HR RSI
52

14 HR DMI
+ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.3298 - Sep high (20th)
1.3259 - Last Fri's high
1.3182 - Y'day's high

Support
1.3127 - Y'day's NY low
1.3080 - Y'day's low (NZ)
1.3028 - Last week's low (Mon)

GBP/USD - 1.3155.. Although cable opened lower n fell to 1.3080 (NZ) Mon following Sun's stalemate in Brexit talks, price erased its losses n rallied to 1.3182 in Europe. Cable later retreated to 1.3127 in NY morning on profit taking.
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, cable's selloff fm 1.3259 to as low as 1.3080 suggests choppy trad ing below Sep's 1.3298 peak would continue n despite subsequent rally to 1.3182, another fall is envisaged after consolidation, below 1.3080 would head to 1.3028/ 33 n only abv 1.3226/30 may risk re-test of 1.3259 but 1.3298 should hold.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3293
2. R2 1.3238
3. R1 1.3195
PP 1.314
1. S1 1.3097
2. S2 1.3042
3. S3 1.2999

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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