Daily Technical Outlook on Major - GBP/USD

Trend Daily Chart
Down

Daily Indicators
Bullish divergences

21 HR EMA
1.2434

55 HR EMA
1.2477

Trend Hourly Chart
Down

Hourly Indicators
Rising fm o/s

13 HR RSI
25

14 HR DMI
-ve

Daily Analysis
Resumption of downtrebd

Resistance
1.2510 - Last Thur's NY low n Mon's low (now res)
1.2481 - Jul 05 low (now res)
1.2439 - Last week's low (now res)

Support
1.2396 - Y'day's 27-month low
1.2367 - 61.8% proj. of 1.2784-1.2439 fm 1.2580
1.2337 - 70.7% r of 1.1491-1.4377)

• GBP/USD - 1.2406... Despite moving narrowly in Asia on Tue, price fell at European open due to broad-based selling in sterling, cable tumbled fm 1.2517 n briefly penetrated 2019 low at 1.2412 to 1.2409, then 1.2396 in NY session.

• On the bigger picture, cable's rally fm 2016 31-year bottom at 1.1491 due to a 'flash crash' on Brexit worries to 2018 21-month peak at 1.4377 in Apr con- firms major low has been made. Sterling's fall to a 20-month bottom of 1.2412 at the start of Jan suggests downside bias remains. Despite erratic rise to 1.3383 in Mar, cable break of Jun's 1.2507 low to 1.2481 last Fri, then y'day's selloff below 1.2412 confirms aforesaid fall fm 1.4377 would head to 1.2337 (70.7% r of 1.1491-1.4377) but 'bullish convergences' on daily indicators would keep price abv 1.2340. On the upside, a daily close bv 1.2580 suggests temporary low is in place n rikss stronger retracement to 1.2662, then 1.2735 in Aug.

• Today, cable's resumption of MT downtrend on Tue due to renewed no-deal Brexit worries suggests price is en route to 1.2385/90, oversold readings on the hourly indicators would limit downside to 1.2450/60 n 1.2337 should hold. Only abv 1.2481 signals temporary low is made, risks stronger gain twd 1.2510.