Daily technical and trading outlook – GBP/USD

fxsoriginal  Daily GBP/USD technical outlook

Last Update At 12 Jan 2022 00:48GMT.

Trend daily chart

Sideways

Daily Indicators

Rising

21 HR EMA

1.3612

55 HR EMA

1.3591

Trend hourly chart

Up

Hourly Indicators

Overbought

13 HR RSI

70

14 HR DMI

+ve

Daily analysis

Resumption of recent up move.

Resistance

1.3698 - Nov 2021 high (03).
1.3674 - Oct 11 2021 high.
1.3652 - 61.8% proj. of 1.3431-1.3599 fm 1.3549.

Support

1.3599 - Last week's high (Wed, now sup).
1.3562 - Tue's low.
1.3533 -Mon's low.

GBP/USD - 1.3640. Cable also swung in choppy fashion Tue in tandem with euro, price rose to a fresh 2-month high of 1.3620 in Europe b4 a brief selloff to 1.3562 in NY but only to rally to session highs of 1.3636 on USD's weakness.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 on Jun 01, sell-off to as low as 1.3162 in Dec signals long-awaited correction has occurred. Having said that, cable's impressive rally to as high as 1.3550 last Fri confirms temporary low is made n daily close abv 1.3607 may head to 1.3708 b4 retreats. Below 1.3431 signals top, 1.3300/10.

Today, cable's gain to 1.3636 suggests recent up move FM Dec's 1.3162 bottoms would head to 1.3650/55 after consolidation, o/bot readings on hourly indicators may cap price below 1.3698. On the downside, below 1.3595/99 signal temp. top is possibly made n would head back to 1.3562, break, 1.3533 (Mon low).

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