FxWirePro: GBP/USD trade Idea

• Cable was consolidating in narrow range between 1.37600 and 1.39240 for the past five trading   days. The pair has formed bearish flag pattern in the hourly chart and any break below down channel trend line will confirms minor weakness.
   
• UK CPI came flat at 3% for the month of Jan but slightly above forecast of 2.9% Y/Y. While core inflation shown a mild jump till 2.7% vs. 2.6%. The pair shown a minor jump but market awaits   US CPI and retail sales data which is to be released for further direction.
   
• Technically on the lower side, near term support is around 1.38600 and any break below will drag the pair down till 1.37975/1.37600 (Feb 9th low)/1.3700 (61.8% fibo).
   
• The near term resistance is around 1.3920 and break above will take the pair till 1.3945 (200- H EMA)/1.4000.

It is good to sell below 1.38600 with SL around 1.3920 for the TP of 1.3920 for the TP of 1.3760/1.3700

Resistance
 

R1-1.3920
 

R2 – 1.3945
 

R3-1.4000
 

Support               
 

S1-1.3860
 

S2-1.37600
 

S3- 1.3700