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.