Weekly technical outlook on major – GBP/USD

AceTrader Team AceTrader

WEEKLY GBP/USD TECHNICAL OUTLOOK

Trend Daily Chart
Sideways

Daily Indicators
Turning up

21 HR EMA
1.2281

55 HR EMA
1.2327

Trend Hourly Chart
Near term down

Hourly Indicators
Rising fm o/s

13 HR RSI
34

14 HR DMI
-ve

Daily Analysis
Resumption of recent decline

Resistance
1.2395 - Last Fri's European high
1.2331 - Last Wed's low (now res)
1.2302 - Hourly chart

Support
1.2205 - Last Fri's low
1.2182 - Mar 27 NY low
1.2145 - Mar 27 European low

GBP/USD - 1.2225.. Despite staging a spectacular rally fm Mar's near 35- year trough of 1.1412 to 1.2485, cable swung widly last week below said res b4 tumbling on Fri fm 1.2410 to 1.2205 (NY) after record low U.K. services PMI.

On the bigger picture, despite cable's rally to 1.4377 in 2018 after a flash crash to 2016 31-year bottom at 1.1491 on Brexit worries, subsequent erratic fall n then selloff below said sup to a near 35-year trough at 1.1412 in mid -Mar due to usd's demand as safe-haven currency following nose dives in global stocks confirms LT fall fm 2007 26-year peak of 2.1162 (Nov) has resumed. Having said that, sterling's spectacular rally back to 1.2485 on active unwinding of long usd's positions in tandem with sharp rise in global stocks suggests temp. low has been made. Last week's selloff to 1.2205 (Fri) would yield weakness to 1.2075 (38.2% r fm 1.1412) after consolidation but 1.1948 (50% r) may hold.

Today, cable's break of 1.2241 sup (Tue low) to 1.2205 Fri signals fall fm 1.2485 has resumed n subsequent bounce in Y on short covering would yield initial choppy swings b4 another fall to 1.2155, 'bullish convergences' on hourly indicators would keep price abv 1.2100. Only abv 1.2331 risks 1.2395.

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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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