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)
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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.
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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.
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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.
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