Daily Technical Outlook on Major - GBP/USD

Trend Daily Chart
Up

Daily Indicators
Rising

21 HR EMA
1.3256

55 HR EMA
1.3254

Trend Hourly Chart
Sideways

Hourly Indicators
Neutral

13 HR RSI
52

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
1.3437 - 61.8% proj. of 1.3005-1.3383 fm 1.3203
1.3383 - Last Wed's near 9-month high
1.3331 - Last Thur's high

Support
1.3203 - Last Fri's low
1.3183 - Y'day's low
1.3149 - Tue's NY high (now sup)

• GBP/USD - 1.3263.. Cable went through a roller-coaster session y'day as despite dropping fm European 1.3300 res to 1.3229, then 1.3183 on renewed Brexit concerns, price pared its losses n rebounded to 1.3259 in NY afternoon.

• On the bigger picture, 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 in Apr confirms major low has been made. Despite subsequent fall to 1.2662 (Aug), then weakness to a 20-month bottom of 1.2412 at the start of Dec and gain to as high as 1.3218 in Jan due to Brexit optimism, then to 1.3351 in Feb suggests said MT fall has ended. Last week's rise above this res to a near 9-month peak at 1.33 83 suggests upmove fm said 1.2412 low would extend to 1.3472 after consolidation, however, 'bearish divergences' on daily indicators would keep price below 1.3610 20. On the downside, only below 1.3005 indicates temp. top is made, risks 1.2945.

• Today, although price has rebounded after y'day's resumption of decline fm Mar's nr 9-month peak at 1.3383 to 1.3183 n minor consolidation would be seen, reckon 1.3280/85 would cap upside n yield another fall later. However, 1.3149 (61.8% r of 1.3005-1.3383) should contain downside n bring rebound.