Daily Technical and Trade Outlook – GBP/USD

GBP/USD Daily Technical Outlook

Last updated at Jan 18, 2022 00:55 GMT.

Daily trend chart

Next to

Daily indicators

Rising

21 HR EMA

1.3714

55 HR EMA

1.3686

Trend hourly chart

Short-term decline

Time indicators

Rising fm o/s

13 HR RSI

49

IMD 2 p.m.

-ve

Daily analysis

Consolidation with a bearish bias.

Resistance

1.3749 - 2-month high from last Thursday.
1.3702 - Last Thur NY low (now resolved).
1.3689 - Monday's high.

Support

1.3638 - Monday low.
1.3622 - Last Wednesday's low.
1.3562 - Last Tuesday's low.

GBP/USD - 1.3654. Although Cable initially tipped sideways yesterday after FM dip 1.3749 (Thursday) to 1.3654 on Friday, the price saw a recovery to 1.3689 in the European morning b4, dropping to 1.3638 in the Northern morning -American holiday.

Overall, despite the brief break in the cable between the 2016 post-Brexit low of 1.1491 and a nearly 35-year low of 1.1412 in mid-March 2020 on USD safe-haven demand following the freefall in global stocks, the price soared to 1.3686 on the last trading day of 2020 following a last minute trade deal between the EU and the UK, then to a peak of 1, 4241 over almost 34 months at the end of February suggests that a major low has been reached. Although it hit a 3-year high at 1.4250 on June 1, selling as low as 1.3162 in December signals that a long-awaited correction has occurred. That said, Cable's impressive rally to 1.3749 last week confirms the temperature. low does n while 1.3599 holds, twd gain 1.3834 is likely b4 retreat. Below 1.3599, top n signals give 1.3431.

Today's strong sell off of the British Pound from 1.3749 to 1.3638 signals that the recent up move from FM 1.3162 (December) has made noise. top n shows falling hourly oscillators which may pressure price towards 1.3603, “bullish convergences� should hold cable abv 1.3562. Only a daily close from 1.3702 indicates a possible pullback above and heads towards 1.3749.