Daily Technical and Trade Outlook – GBP/USD

GBP/USD Daily Technical Outlook

Last updated at April 12, 2022 00:08GMT.

Daily trend chart

Down

Daily indicators

Fall

21 HR EMA

1.3029

55 HR EMA

1.3039

Trend hourly chart

Next to

Time indicators

Neutral

13 HR RSI

46

IMD 2 p.m.

-ve

Daily analysis

Consolidation b4 one more fall

Resistance

1.3108 – Last Wednesday’s high
1.3084 – Thur reaction high fm 1.3053
1.3057 – Monday high

Support

1.2983 – New 16-month low from last Friday
1.2952 – 61.8% project. from 1.3299-1.3046 fm 1.3108
1.2925 – 50% proj. from 1.3749-1.3000 fm 1.3299

GBP/USD – 1.3022. The cable also swung wildly in tandem with the euro on Monday. Price initially rose slightly to 1.3042 (NZ) n fell to 1.2990 on weak UK GDP but rallied to 1.3057 on sterling b4 cross buying to fall back to 1.3019 in New York .

Overall, despite the Cable’s brief pause between the post-Brexit low of 1.1491 in 2016 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, a sell-off to 1.3162 in December signals a long-awaited correction. Cable drop to 1.3273 (February) then 1.3000 in mid-March would head towards 1.2831. On the upside, only the daily close from 1.3182 signals that a temporary low has been reached and is likely to strengthen towards 1.3299.

Today’s brief cable break from 1.3000 to 1.2983 on Friday signals that MT’s downtrend has finally resumed heading towards 1.2952 after consolidation, “bullish convergences” on the hourly indicators should keep the price at 1.2925. On the upside, only abv 1.3084 can risk a stronger gain to 1.3106/08 b4 prospect of further decline.

Garland K. Long