FxWirePro: GBP/USD trades higher on flattening of Yield curve, good to buy on dips

• Major Resistance – 1.3230 (double top)
   
• Cable recovers sharply after forming a temporary bottom at 1.30618 after dovish rate hike. The main reason for jump in UK pound was mainly due to better than expected UK economic data. The pair has broken major resistance 1.3230 high made on Nov 10th 2017. It is currently trading around 1.32513.
   
• UK retail sales rose 0.3% for the month of Oct compared to forecast of 0.1%. The previous month it has declined by 0.7%.  US 2 year yield hits 9- year high and yield curve declined for past four days. The yield curve is flattest in 10 years.
   
• The pair breaks major resistance at 1.3230 and hits intraday high of 1.32559. Any daily close above 1.3230 (61.8% retracement of 1.3320 and 1.30390) will take the pair to next level till 1.3300/1.3380. Short term bullish invalidation only below 1.30280.
   
• On the lower side, near term support is around 1.31750 and any break below will drag the pair to next level till 1.3130/1.3100/1.3060/1.30270.

It is good to buy on dips around 1.3170 with SL around 1.3100 for the TP of 1.3300/1.3380.