Daily Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK

Last Update At 12 Dec 2019 00:03GMT

Trend Daily Chart
Up

Daily Indicators
Bearing divergences

21 HR EMA
1.3003

55 HR EMA
1.2829

Trend Hourly Chart
Up

Hourly Indicators
Bearish divergences

13 HR RSI
63

14 HR DMI
+ve

Daily Analysis
One more rise b4 retreat

Resistance
1.3298 - Sep 20 high (2018)
1.3269 - Mar 27 high
1.3215 - Tue's 8-1/2 month high

Support
1.3170 - Y'day's hourly sup
1.3142 - Y'day's hourly sup
1.3107 - Y'day's low

GBP/USD - 1.3201.. Despite dropping to 1.3107 in Aust. on YG's final poll result, the pound rallied to 1.3186 in NY morning on cross-buying in stg vs euro, then higher to 1.3213 on usd's weakness in post-FOMC trading.

On the bigger picture, despite a flash crash to 2016 31-year bottom at 1.1491 on Brexit worries, cable rally to 2018 21-mth peak at 1.4377 in Apr confirms major low has been made. Despite sterling's sharp fall to 1.2412 at the start of Jan, then to a 34-month bottom of 1.1959 in Sep, subsequent rally to 1.2582 in Sep on easing of market fear of a no-deal Brexit, then rise to 1.3215 Tue suggests choppy trading abv 1.1491 would continue with upside bias for gain to 1.3298 later this month, reckon 1.3383 should cap upside. Only daily close below 1.3087 signals temporary top is made n risks stronger retracement to 1.2983/85, break may extend twd 1.2879.

Today, as y'day's rally fm 1.3107 to 1.3213 suggests pullback fm Tue's 8- 1/2 month peak at 1.3215 has ended n abv said res would extend MT upmove to 1.3269, however, bearish divergences on hourly indicators would keep price below 1.3298 n yield correction. Only below 1.3142 indicates top made, 1.3107.

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AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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