FxWirePro: Cable trades weak, good to sell on rallies
GBP has formed a bottom around 1.2868 on Friday and shown a minor recovery form that level. The pair has broken low made in previous week at 1.28668 and declined till 1.28576 at the time of writing and is currently tradi…
GBP has formed a bottom around 1.2868 on Friday and shown a minor recovery form that level. The pair has broken low made in previous week at 1.28668 and declined till 1.28576 at the time of writing and is currently trading around 1.29017.
Cable came under pressure at the end of last week on account of weak U.K economic data.
The pair formed temporary top around 1.30475 on May 18th 2017. Any violation above 1.3050 will take the pair till 1.3110 (113% retracement of 1.30475 and 1.25894)/1.3150/1.33150 (88.6% retracement of 1.3440 and 1.19040). The minor resistance is around 1.2917/1.2965 (61.8% retracement of 1.3030 and 1.28576).
On the lower side, near term minor support is around 1.2860 (21- day EMA) and any break below will drag the pair down till 1.2810 (daily Kijun-Sen)/1.2758 .
It is good to sell on rallies around 1.2910-1.2915 with SL around 1.2980 for the TP of 1.2845/1.2810/1.2750.
