Weekly Technical Outlook on Major -GBP/USD

AceTrader Team AceTrader

WEEKLY GBP/USD TECHNICAL OUTLOOK
Last Update At 17 Jul 2017 00:06GMT

Trend Daily Chart
Up

Daily Indicators
Bearish divergences

21 HR EMA
1.3051

55 HR EMA
1.2966

Trend Hourly Chart
Up

Hourly Indicators
Overbought

13 HR RSI
83

14 HR DMI
+ve

Daily Analysis
Resumption of recent uptrend

Resistance
1.3247 - 61.8% proj. of 1.1983-1.3048 fm 1.2589
1.3169 - 80.9% proj. of 1.2589-1.3030 fm 1.2812
1.3121 - 50% proj. of 1.1983-1.3048 fm

Support
1.25891.3048 - May 18 high (now res)
1.3000 - Hourly chart
1.2955 - Last Thur's high (now sup)

. GBP/USD - 1.3110.. Although cable remains on the back foot initially last week n fell to a 2-week low of 1.2812 on Wed, price rallied strongly on Fri due to broad-based buying in sterling n climbed to a 10-month peak of 1.3114.

. Let's look at the bigger picture 1st, despite cable's 'flash crash' to 2016 31-year bottom of 1.1491 in Oct 2016, subsequent rally to 1.3048 in May suggests a major low is made. Last Fri's rally to 1.3114 confirms said MT upmove has finally resumed n would head to 1.3187 next, then 1.3256 (50% r of 1.5022- 1.1491) later this week, however, as hourly n daily oscillators' readings would be in o/bot territory on such move, reckon res 1.3445 should cap upside. There- fore, buying cable on dips again on dips is recommended n only a daily close below 1.3000 would be the 1st signal temporary top is in place, then risk would shift to the downside for stronger retracement twd 1.2812 later this month.

. Today, cable's close at the day's high on Fri should keep price firm n yield further headway to 1.3150/60 would be seen after consolidation, o/bot read ings on the hourly oscillators would prevent strg gain n reckon 1.3100 would cap upside. Only below 1.3030 (Jun high) signals temp. top is made, risks 1.3000.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.3135
2. R2 1.3125
3. R1 1.3117
PP 1.3107
1. S1 1.3100
2. S2 1.3089
3. S3 1.3082

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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