Home Correction trading Weekly Technical and Trade Outlook – GBP/USD

Weekly Technical and Trade Outlook – GBP/USD

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GBP/USD Weekly Technical Outlook

Last updated at February 20, 2022 23:51GMT

Daily trend chart

Next to

Daily indicators

Neutral

21 HR EMA

1.3600

55 HR EMA

1.3596

Trend hourly chart

Next to

Time indicators

Fall

13 HR RSI

43

IMD 2 p.m.

-ve

Daily analysis

Consolidation with a bearish bias

Resistance

1.3689 – High of January 17
1.3661 – January 20 high
1.3643 – February 10 High

Support

1.3600 – Last Wednesday’s top (now sup)
1.3557 – Last game low
1.3539 – New York low last Wednesday

GBP/USD – 1.3593. Although the cable was extended prev. week dip fm 1.3643 to 1.3487 last tue price caught a bid on the active cross sell esp vs euro n rose to 1.3642 (friday) b4 falling to 1.3574 in new york on buying USD on a large scale.

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. That said, Cable’s impressive rally to 1.3749 in early January confirms the temperature. The low reached, despite a subsequent sharp decline to 1.3359, the gain to 1.3643 in mid-February may reverse to 1.3661, 1.3749.

Today, Friday’s drop from 1.3642 to 1.3574 suggests that the choppy swings below the February high at 1.3643 would continue, the current bearish hourly indicators would pressure price n below 1, 3557 back to 1.3515/20, however, 1.3487 would contain weakness. On the upside, only abv 1.3643 risks 1.3661 but 1.3689 should hold.