- Cable shown a major recovery after hitting 3- week low at 1.30750 on raising 2 year yield spread between US and UK. It is currently trading around 1.32133.
- The pair is expected to remain silent next two days as minor movement can be seen only after UK manufacturing PMI data which is to be released on Nov 1st. Major event which will change the Pound sterling trend will be BOE monetary policy and jobs data which will be released on Super Thursday
- The pair has taken support near 38.2% retracement at 1.3075 and any further minor weakness can be seen below that level. Any violation below 1.3075 will take the pair till 1.30270 likely. Any further weakness can be seen only below 1.30270 and break below will drag the pair till 1.3000/1.29689 (161.8% retracement of 1.31030 and 1.32794).
- On the higher side, near term resistance is around 1.3230 and any break above will take the pair to next level till 1.3280 (Oct 26th 2017 high)/1.3300/1.3380. Minor bullishness can be seen only above 1.3300.
It is good to sell on rallies around 1.3265-1.3270 with SL of 1.3380 for TP of 1.3170/1.3130.
Resistance
R1- 1.3230
R2 1.3280
R3- 1.3380
Support
S1- 1.3170
S2-1.3130
S3-1.3070
