Daily Technical Outlook on Major - GBPUSD

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
1.2811

55 HR EMA
1.2830

Trend Hourly Chart
Near term down

Hourly Indicators
Falling

13 HR RSI
34

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
1.2936 - Last Mon's NY high
1.2885 - Mon's high
1.2821 - Y'day's European morning low (now res)

Support
1.2776 - Y'day's low
1.2725 - Nov's low (15)
1.2697 - Oct's low (30)

• GBP/USD - 1.2788.. Cable traded sideways in Asia on Tue b4 dropping fm 1.2881 to 1.2821 in Europe. Price then rose to session highs at 1.2884 b4 tank- ing to an intra-day low at 1.2776 in NY on usd's broad-based strength.

• On the bigger picture 1st, cable's rally fm 2016 31-year bottom at 1.1491 caused by a 'flash crash' on Brexit worries to 2018 21-month peak at 1.4377 (Apr) confirms major low has been made. Having said that, subsequent selloff to as low as 1.2662 in Aug due to usd's strength suggests 1st leg of correction is over n consolidation is seen, as long as 1.3298 (reaction high) holds, re-test of 1.2662 can't be ruled out, 'bullish convergences' on daily indicators shoud limit weakness to 1.2441 (50% proj. of 1.4377-1.2662 fm 1.3298). Abv 1.3176 sig- nals low is possibly made n risks re-test of 1.3298, break there would turn out- look bullish for gain twd 1.3519 (this is 50% r of 1.4377-1.2662) in Dec/Jan.

• Today, although y'day's retreat fm 1.2884 suggests the recovery fm last Thur's 2-week low at 1.2725 has ended at 1.2885 Mon n downside bias remains, as hourly oscillators' readings would dispaly 'bullish convergences' on next fall, reckon 1.2697 would hold. Only abv 1.2885 risks stronger retrace. twd 1.2936.

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