Daily Technical Outlook on Major - GBP/USD

DAILY GBP/USD TECHNICAL OUTLOOK

Trend Daily Chart
Sideways

Daily Indicators
Turning down

21 HR EMA
1.3010

55 HR EMA
1.3014

Trend Hourly Chart
Sideways

Hourly Indicators
Rising

13 HR RSI
57

14 HR DMI
+ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.3098 - Last Fri's high
1.3045 - Mon's high
1.3034 - Y'day's high

Support
1.2974 - Hourly sup
1.2955 - Y'day's low
1.2905 - Dec 23 low

GBP/USD - 1.3019... The pound met renewed selling at 1.3002 in Asian morning and dropped to an 18-day low at 1.2955 in Europe on expectation of a BoE rate cut b4 rising to an intra-day high at 1.3034 in NY on cross-buying of stg.

On the bigger picture, despite a flash crash to 2016 31-year bottom at 1.1491 on Brexit worries, cable rally to a 21-month peak at 1.4377 in 2018 con- firms a major low has been made. Although the sharp fall to 1.2412 at the start of Jan 2019, then to a 34-month bottom of 1.1959 in Sep suggests correction has ended, sterling's subsequent rally to as high as 1.3516 in mid-Dec on easing of market woes of a hard Brexit suggests choppy trading abv 1.1491 would continue. Having said that, Dec's fall to 1.2905 signals consolidation with downside bias remains for weakness twd 1.2737 (50% r fm 1.1959). Only abv 1.3283 indicates pullback fm 1.3516 has ended n may climb back twd 1.3516 in Feb/Mar.

Today, as y'day's low was accompanied by 'bullish convergences' on the hourly indicators, subsequent rebound to 1.3034 suggests recent decline fm 1.3283 has made a temporary bottom n stronger retracement to 1.3080/85 would be seen after consolidation. Only below 1.2974 signals recovery over, 1.2955,1.2905

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