Daily Technical Outlook on Major - GBP/USD

DAILY GBP/USD TECHNICAL OUTLOOK

Trend Daily Chart
Down

Daily Indicators
Turning up

21 HR EMA
1.2951

55 HR EMA
1.2979

Trend Hourly Chart
Down

Hourly Indicators
Oversold

13 HR RSI
32

14 HR DMI
-ve

Daily Analysis
One more fall b4 rebound

Resistance
1.3049 - Tue's high
1.3023 - Y'day's high
1.2971 - Tue's low (now res)

Support
1.2908 - Y'day's low
1.2895 - Last Tue's low
1.2873 - Last Mon's 2-1/2 month low

GBP/USD - 1.2928.. Although the pound traded sideways in Asia n edged up to 1.3023 on UK inflation data, price erased its gains n tumbled to an intra-day low at 1.2908 in NY afternoon on usd's broad-based strength.

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 confirms 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, sterling's rally after Mon's fall to a 2-1/2 month trough at 1.2873 suggests decline fm Dec's 1-1/2 year peak at 1.3516 has made a temporary low n stronger retracement twd 1.3126 may be seen but 1.3210 should hold.

Today, although y'day's selloff to 1.2908 suggests rise fm Feb's 2-1/2 month trough at 1.2873 has ended at 1.3069 last Thur n marginal weakness is likely, as hourly oscillators would be in o/sold territory, reckon said 1.2873 sup would remain intact n yield rebound. However, 1.2971 would remain intact.

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