- GBP/USD has declined almost 70 pips after Brexit revamp plan fails. German Chancellor Merkel has refused to accept Theresa May new Brexit plan. UK PM Theresa May will host the cabinet meeting at chequers today where agreement for the third post Brexit trading proposal ,dubbed the "facilitated customs arrangement", will be the main focus of the meeting. Markets eye US NFP data to be released today for further direction. US economy is expected to add 195k jobs for the month in Jun and wage growth seems rising at 2.8% y/y. BOE governor in speech h yesterday mentioned that UK economy is growing better and chance of rate hike in Aug are high.
- Technically near term resistance is around 1.3260 (20- day MA) and any convincing break above will take the pair till 1.3300. The pair should close well above 1.3300 on daily basis for further jump till 1.3400/1.3465.
- On the lower side, near term major support is around 1.320 (55- 4H EMA) and any break below will target 1.3150/1.3100/ 1.3045 (trend line support)/1.3000.
It is good to buy on dips around 1.3200 with SL around 1.3150 for the TP of 1.3300/1.3400.
Resistance
R1- 1.3260
R2 –1.3300
R3- 1.3400
Support
S1- 1.3200
S2-1.3150
S3-1.3090
