- Cable declined sharply in previous week and touched low of 1.30270 on account political uncertainty in UK. Pound sterling was the worst performing currency in the previous week over the fresh political uncertainty as Theresa May’s day at Downing Street are expected to be numbered.
- GBP/USD shown a major recovery from the low of 1.30270 and is currently trading around 1.31625. The Intraday term trend is still weak as long as 1.3180 (23.6% retracement of 1.36574 and 1.30272). Any break above 1.3180 will take the pair to next level till 1.3230/1.3280 (daily Kijun-Sen)/1.3300. The near term resistance is around 1.3135 (50- day MA)/1.3160.
- On the lower side, near term major support is around 1.3015 (100- day MA) and any break below will drag the pair down till 1.2950 (trend line support)/1.28697 (50% fibo)/1.2850. Bearish continuation can be seen below 1.2770 (Resistance turned into support). The minor support is around 1.3130/1.3100.
It is good to sell on rallies around 1.3180 with SL around 1.3230 for the TP of 1.3060/1.3015.
Resistance
R1- 1.3180
R2 1.3230
R3- 1.3300
Support
S1- 1.3130
S2-1.3090
S3-1.3015
