Daily Technical Outlook on Major - GBP/USD

Trend Daily Chart
Sideways

Daily Indicators
Rising

21 HR EMA
1.2333

55 HR EMA
1.2334

Trend Hourly Chart
Sideways

Hourly Indicators
Turning up

13 HR RSI
48

14 HR DMI
-ve

Daily Analysis
Consolidation with upside bias

Resistance
1.2430 - 50% proj. of 1.1959-1.2353 fm 1.2233
1.2385 - Mon's near 6-week high
1.2371 - Wed's high

Support
1.2307 - Tue's low
1.2284 - Y'day's low
1.2233 - Mon's low

GBP/USD - 1.2331.. Cable went through a roller coaster ride as despite initial euro-led fall to session lows at 1.2284 at NY open, price erased its losses n rallied to an intra-day high at 1.2366 in NY on usd's weakness.

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 1.2412 at the start of Jan, then to a 30-month bottom of 1.2015 in Aug suggests downside bias remains n last Tue's fall to a 34-month trough at 1.1959 signals decline fm 2018 peak at 1.4377 has once again resumed, however, subsequent rally to 1.2353 on Thur suggests a temporary low has been made n stronger retracement to 1.2439 would be seen b4 prospect of retreat. Only below 1.2211 indicates correction is over, risks weakness to 1.2156 but 1.1959 should hold this week.

Today, as y'day's rally fm 1.2284 signals pullback fm Mon's high at 1.2385 has ended there n consolidation with upside bias remains for a re-test of said res, break would extend recent upmove marginally but 1.2430 should remain intact. Only below 1.2284 would revive bearishness for weakness to 1.2233.

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