- Cable has broken major resistance around 1.30475 made on May 18th 2017 after weaker than expected U.S economic data. The pair jumped till 1.31138 on Friday and is currently trading around 1.30647.
- U.S data came slightly weaker than expected on Friday. U.S core retail sales came at -0.2% compared to forecast of 0.2%. U.S core CPI inflation data came at 0.1% m/m compared to forecast of 0.2%. Weak economic has dimmed the chance of more rate hike by US Fed.
- on the higher side, the pair closed well above the temporary top formed at 1.30475 on Friday an d this confirms minor trend reversal , a jump till 1.3200 likely.
- On the lower side, near term support is around 1.30470 (resistance turned into support, 23.6% retracement of 1.28118 and 1.31138) and any break below will drag the pair till 1.3000/1.2965 (daily Tenkan-Sen).
It is good to buy on dips 1.30450-1.30475 with SL around 1.2990 for the TP of 1.3200.
Resistance
R1-1.3120
R2 -1.3200
R3- 1.3300
Support
S1-1.3045
S2-1.3000
S3-1.2965
