FxWirePro: GBP/USD declined sharply after slightly dovish comments from Carney, good to sell on rallies
Cable has shown a slight jump in European session after better than UK inflation data. Britain’s inflation rose to 3% Y-O-Y in Sep compared to 2.9% previous month. But Retail Price Index rose only 0.1% compared to foreca…
Cable has shown a slight jump in European session after better than UK inflation data. Britain’s inflation rose to 3% Y-O-Y in Sep compared to 2.9% previous month. But Retail Price Index rose only 0.1% compared to forecast of 0.3%. The inflation was well above BOE forecast of 2%. So this increase chance of rate hike in Nov.
But BOE Governor Mark Carney expressed less willingness to hike interest rate in Nov and this dragged the pair down below 1.3200 and is currently trading around 1.31950.
The near term major resistance is around 1.3325 (20- day MA) and any break above will take the pair to next level till 1.3400/1.3420/1.3460. The minor resistance is around 1.3300.
On the lower side, 1.3180 will be acting as major support and any break below will drag the pair down till 1.3120/1.30750 level. Bearish continuation can be seen only below 1.3030.
It is good to buy on dips around 1.3180 with SL around 1.3120 for the TP of 1.3320/1.3400.
