FxWirePro: GBP/USD tumbles on UK political uncertainty, good to sell on rallies

• Cable slides sharply after hitting a high of 1.32295 (61.8% fibo) on account of political uncertainty in UK. The pair declined till 1.30618 and is currently trading around 1.30725.
   
• The pair tumbled after reports shows that 40 MP’S are ready to sign no confidence against UK PM Theresa May. This is eight short of the number needed to trigger a party leadership contest.
   
• The UK and EU concluded sixth round of talks but lot of issues to be fixed and EU’s Brexit negotiator has given UK deadline. He has asked UK to move fast and clarify its position for further negotiations in Dec.
   
• The pair has broken major support of 1.30850 low made on Nov 9th 2017 and this confirms minor weakness and a dip till 1.30280 likely. Any break below 1.30270 temporary bottom formed on Oct 6th 2017 low will confirm major trend reversal and a dip till 1.3000/1.29235 (161.8% fibo) is possible. Short term weakness only below 1.27700.
   
• On the higher side, near term major resistance is around 1.3145 (4- H Kijun-Sen) and any violation above will drag the pair to next level till 1.3180/1.3230 (61.8% retracement of 1.3320 and 1.30390).

It is good to sell on rallies around 1.31000 with SL around 1.3165 for the TP of 1.3000/1.2925.