- Cable hits 1- ½ month high at 1.3369 on Friday on positive Brexit tone. The main jump in GBP in previous week was mainly due to weakness in US dollar.US dollar declined sharply after breaking major support 93 and hits low of 92.68 on Friday. The December rate hike was already priced in and dovish Fed minutes meeting is pulling the US dollar further down. It is currently trading around 1.33438.
- UK ministers to unveil UK’s post- Brexit economy plan. The plan to improve the UK industry in advance of its leaving the EU to be released later today.
- The pair has broken major resistance at 1.3380. Any break above 1.3380 will take the pair to next level till 1.3400/1.3500. Short term bullish invalidation only below 1.30280.
- On the lower side, near term support is around 1.32300 and any break below will drag the pair to next level till 1.3175/1.3130/1.3100/1.3060/1.30270. The minor support is around 1.3280.
It is good to buy on dips around 1.3325-30 with SL around 1.3275 for the TP of 1.3400/1.3500.
Resistance
R1-1.3400
R2 1.3435
R3- 1.3500
Support
S1- 1.3280
S2- 1.3230
S3-1.3175
