Weekly Technical Outlook on Major - GBP/USD

WEEKLY GBP/USD TECHNICAL OUTLOOK
Last Update At 20 May 2019 00:27GMT

Trend Daily Chart
Down

Daily Indicators
Neutral

21 HR EMA
1.2745

55 HR EMA
1.2768

Trend Hourly Chart
Down

Hourly Indicators
Turning up

13 HR RSI
31
14 HR DMI
-ve

Daily Analysis
Consolidation b4 one more fall

Resistance
1.2826 - Last Wed's low (now res)
1.2788 - Last Thur's low (now res)
1.2760 - Hourly res

Support
1.2714 - Last Fri's 4-month low
1.2672 - Jan 15 low
1.2618 - Jan 04 low

. GBP/USD - 1.2730... Cable continued its recent losing streak last week due to Brexit n UK leadership concerns, price fell fm from 1.3041 (Mon) to 1.2714 usd caught a bid in NY session after upbeat U.S. data.

. On the bigger picture, cable's rally fm 2016 31-year bottom at 1.1491 caused by a 'flash crash' on Brexit worries to 2018 21-month peak at 1.4377 in Apr confirms major low has been made. Despite subsequent fall to 1.2662 (Aug), then weakness to a 20-month bottom of 1.2412 at the start of Dec and gain to 1.32 18 in Jan due to Brexit optimism, then to 1.3383 near mid-Mar suggests said MT fall has ended. Despite early strg rebound fm 1.2866 to 1.3177 in May, last week's selloff below 1.2866 confirms decline fm 1.3383 has resumed n would head to next daily obj. at 1.2672, as daily indicators would be in o/sold territory on such move, reckon 1.2597 (80.9% r fm 1.2412) would hold. Abv 1.2826, 1.2967.

. Today, Fri's selloff to a 4-month trough at 1.2714 suggests the erratic fall fm 2019 peak at 1.3383 remains in progress n would head twd 1.2672 target, however, 'bullish 'convergences' on hourly indicators should keep price abv 1.26 25/30. On the upside, only abv 1.2788 signals temp. low made, risks 1.2816/26.