Weekly Technical Outlook & Trading GBP/USD

AceTrader Team AceTrader

WEEKLY GBP/USD TECHNICAL OUTLOOK
Last Update At 24 Oct 2016 00:06GMT

Trend Daily Chart
Down

Daily Indicators
Bullish convergences

21 HR EMA
1.2224

55 HR EMA
1.2239

Trend Hourly Chart
Sideways

Hourly Indicators
Turning up

13 HR RSI
45

14 HR DMI
-ve

Daily Analysis
Choppy consolidation to continue

Resistance
1.2334 - Last week's high
1.2299 - Last Thur's high
1.2274 - Last Thur's NY high

Support
1.2171 - Last Fri's low
1.2132 - Oct 13 low
1.2090 - Oct 11 low

. GBP/USD - 1.2214.. The pound went on a roller-coaster ride last week. Although cable met renewed buying at 1.2136 on Mon n rose steadily to 1.2334 on waning hard-Brexit fear, renewed usd's strength pressured price to 1.21 Fri.

. On the daily chart, cable's break of Jul's 31-year bottom at 1.2798 con- firms LT fall fm 2.1162 (Oct 2007) has resumed n despite a 'flash crash' to 1.14 91 on Oct 6, intra-day swift jump to 1.2483 n a daily close near the day's high which resulted in a spike bottom 'reversal' pattern on the daily chart together with 'bullish convergences' on the daily indicators' suggest low has been made. Although last week's volatile swings n weakness to 1.2171 on Fri signals initial choppy consolidation is in store this week, as long as 1.2090 sup holds, another rebound is likely but abv 1.2334 needed to head twd 1.2483. A daily close below 1.2090 may risk 1.2000/10 but 1.1987 (50% r of 1.1491-1.2483) would hold.

. Today, despite Fri's eur/usd-led weakness to 1.2171 in NY morning, subse quent rebound to 1.2243 suggests choppy trading abv 1.2090 low would continue n mild upside bias is seen for gain twd 1.2299, last week's high at 1.2334 should cap upside, therefore, one can trade cable on both sides of the market.

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

1. R3 1.2247
2. R2 1.2238
3. R1 1.2230
PP 1.2221
1. S1 1.2213
2. S2 1.2204
3. S3 1.2196

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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