Daily Technical Outlook on Major - GBP/USD

    DAILY GBP/USD TECHNICAL OUTLOOK
Last Update At 22 Jan 2020 00:12GMT

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
1.3040

55 HR EMA
1.3030

Trend Hourly Chart
Sideways

Hourly Indicators
Turning down

13 HR RSI
58

14 HR DMI
+ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.3169 - Jan 08 high
1.3120 - Last Fri's high
1.3083 - Y'day's high

Support
1.3040 - Y'day's NY low
1.2996 - Y'day's low
1.2962 - Mon's low

GBP/USD - 1.3053... Although cable edged lower to 1.2996 y'day in Asian morning, price erased its losses and rallied to seession highs at 1.3083 at NY open on the back of upbeat U.K. jobs data b4 retreating to 1.3040.

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, cable's rebound fm 1.2962 (Mon) to 1.3083 on Tue suggests choppy trading abv last week's 1.2955 low would continue, subsequent retreat to 1.3040 signals downside bias remains, below 1.3021/23 would yield weakness to 1.2996 but 1.2962 should hold. Only abv 1.3083 risks marginal gain to 1.3100/05.