Daily Technical Outlook on Major - GBP/USD

Trend Daily Chart
Down

Daily Indicators
Turning up

21 HR EMA
1.2133

55 HR EMA
1.2135

Trend Hourly Chart
Sideways

Hourly Indicators
Falling

13 HR RSI
43

14 HR DMI
-ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.2250 - Jul 31 high
1.2209 - Aug's high (06)
1.2180 - Tue's high

Support
1.2112 - Y'day's low
1.2065 - Tue's low
1.2042 - Last Tue's low

GBP/USD - 1.2127.. Cable met renewed selling at 1.2174 in Asia n dropped to an intra-day low at 1.2112 in NY on continued no-deal Brexit concern b4 recovering to 1.2155 b4 retreated again to 1.2120 after Fed minutes.

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 confirms major low has been made. Sterling's fall to a 20-month bottom of 1.24 12 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 a 30-month trough at 1.2080 at the start of Aug, then to 1.2015 last Mon suggests said fall fm 1.4377 would head to 1.1983 (2017 low in Jan), oversold readings on daily indicators may keep price abv 1.1823 (2.618 ext. of 1.3383-1.2866 fm 1.3177). Although last Fri's gain to 1.2175 signals temp. low made, only abv 1.2250 risks 1.2382.

Today, although sterling has retreated after Wed's rally fm 1.2065 to 1.2180, as 1.2112 has contained weakness, consolidation with upside bias remains for another rise to 1.2209, however, reckon 1.2250 res would remain intact. Only below 1.2101/06 would risk weakness to 1.2065/75 but 1.2042/45 should hold.