Weeky Technical Outlook on Major - GBP/USD

AceTrader Team AceTrader

WEEKLY GBP/USD TECHNICAL OUTLOOK
Last Update At 18 Feb 2019 00:04GMT

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
1.2862

55 HR EMA
1.2848

Trend Hourly Chart
Sideways

Hourly Indicators
Getting o/bot

13 HR RSI
75

14 HR DMI
+ve

Daily Analysis
Consolidation with upside bias

Resistance
1.2997 - Feb 07 high
1.2959 - Last Wed's high
1.2940 - Intra-day high (Reuters)

Support
1.2773 - Y'day's 1-month low
1.2720 - 61.8% r of 1.2412-1.3218
1.2670 - Jan 15 low

. GBP/USD - 1.2903.. Although cable remained on the back foot initially last week n fell to a near 1-month low of 1.2771 on Thur after PM May's Brexit plan was rejected by UK lawmakers, price rallied to 1.2940 (Reuters) in NZ.

. 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 selloff to 1.2662 (Aug) due to usd's strength, then weakness to a 20-month bottom of 1.2412 at the start of Dec and then gain to as high as 1.3218 in Jan due to Brexit optimism suggests said MT fall has ended. Having said that, subsequent selloff to 1.2773 last week signals upmove fm 1.3412 has made a top there n stronger retracement to 1.2720 (61.8% r) would be seen but reckon 1.2672 may hold. Only abv 1.3000 wud indicate pullback has possibly ended instead n risk stronger gain twd 1.3160.

. Today, Fri's rally abv 1.2878 res to 1.2897 due to usd's broad-based weakness in NY afternoon on Fed Daly's dovish comments signals long-awaited correction of recent decline has occurred n as long as 1.2831 hold, gain twd 1.2959 is envisaged, o/bot readings on hourly indicators should cap price below res 1.2997.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.3045
2. R2 1.2972
3. R1 1.2932
PP 1.2858
1. S1 1.2818
2. S2 1.2745
3. S3 1.2705

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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.