GBPUSD has shown a good recovery of more than 100 pips from the low of 1.30263 made yesterday. The major reason for jump in GBP is optimism prevailing over Brexit deal and slight weaker than expected US CPI data has increased broad based US dollar selling.In the monetary policy meeting held yesterday Bank of England has kept its rate unchanged unanimously at 0.75% as widely expected. Asset purchase target unchanged at GBP 435B. BOE has mentioned that there are indications of “greater than uncertainty “ regarding Brexit. Markets eye BOE Governor Mark Carney speech at Dublin
US CPI rose less than expected and it came at 0.2% in Aug but annual core CPI is at 2.2% compared to forecast of 2.4%.
Cable is facing strong resistance at 1.3140 and any violation above targets 1.3184 (100- day MA)/1.3235/1.3300.
On the lower side, near term support is around 1.3070 and any break below targets 1.3030/1.3000/1.2965.
It is good to buy on dips around 1.3090 with SL 1.3030 for the TP of 1.3210/1.3300.
