Daily technical outlook on major – GBP/USD

AceTrader Team AceTrader

DAILY GBP/USD TECHNICAL OUTLOOK

Trend Daily Chart
Down

Daily Indicators
Oversold

21 HR EMA
1.1834

55 HR EMA
1.1779

Trend Hourly Chart
Up

Hourly Indicators
Turning down

13 HR RSI
51

14 HR DMI
-ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.2000 - Last Tue's low (now res)
1.1973 - Y'day's high
1.1918 - Y'day's NY res

Support
1.1778 - Intra-day low
1.1640 - Y'day's low
1.1605 - Tue's hourly sup

GBP/USD - 1.1857.. The British pound swung wildly y'day as despite initial rally to session highs at 1.1973 in Europe, price tumbled to an intra-day low at 1.1640 in NY on broad-based stg weakness b4 rebounding to 1.1918 in late NY.

On the bigger picture, despite cable's rally to 1.4377 in 2018 after flash crash to 2016 31-year bottom at 1.1491 on Brexit worries, subsequent erra- tic decline n Wed's selloff below said sup on usd's broad-based strength due to worldwide spreading of coronavirus to a 35-year trough at 1.1450 on Thu confirms Long Term decline fm 2007 26-year peak of 2.1162 (Nov) has resumed. Having said that, despite y'day's strg bounce to 1.1793, subsequent fall n break of said low would pressure price to 1.1270/80 later this month b4 prospect of a rebound. On the upside, only a daily close abv 1.1700 would indicate pullback has ended instead n yield gain twd 1.1793 but 1.1870 should remain intact.

Today, although y'day's rebound to 1.1918 after selloff fm 1.1973 to 1.1640 suggests the pullback has ended, abv said res is needed to signal upmove fm last Fri's near 35-year bottom at 1.1412 has resumed n extend to 1.2000 later. Only below 1.1778 would revive bearishness for weakness to 1.1640.

Author

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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