Daily Technical and Business Outlook – GBP / USD

GBP / USD Daily Technical Outlook

Last updated at 21 October 2021 00: 39GMT.

Daily trend chart

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Daily indicators

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21 RH EMA

1.3810

55 RH EMA

1.3789

Hourly trend chart

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Hourly indicators

Neutral

13 RH RSI

60

14 RH DMI

+ ve

Daily Analysis

Consolidation b4 still rising.

Resistance

1.3913 – Seven high (14th).
1.3853 – September 15 high.
1.3834 – 1-month high Mar.

Support

1.3788 – Wednesday’s Asian low.
1.3743 – Low seas.
1.3710 – Monday low.

GBP / USD – 1.3822 .. Cable trading proved tricky during Wednesday’s roller coaster session. Although selling interest at 1.3814 in Asia pushed the price down to 1.3743 after weak UK inflation data, the pound then rallied to 1.3834 in New York. .

Overall, despite the brief break in the cable from the 2016 post-Brexit low of 1.1491 to an almost 35-year low of 1.1412 in mid-March 2020 on USD safe haven demand continued as global equities plummeted, the price shot up to 1.3686 on the last trading day of 2020 following a last-minute trade deal between the EU and the UK, then spiking closely 34 months at 1.4241 at the end of February suggests a major low has been reached. Although it hit a 3-year high at 1.4250 on June 1, the sell to a July low of 1.3753 confirms the long-awaited correction. Although the price fell to a 9 month low at 1.3412 in late September, a subsequent rally to a high of 1.3834 y’day suggests the low is reached, a daily close of around 1.3834 would head towards 1.3930 (61.8% r).

Today, Wednesday’s rebound from 1.3743 to 1.3834 due to the USD’s renewed weakness on risk sentiment suggests that the recent rise to 1.3412 would head towards 1.3885 / 95, the “Bearish divergences” on hourly indicators are expected to cap price below September’s 1.3913 peak. A firm break of 1.3773 signals the top, returns 1.3743, then 1.3710.