FxWirePro: GBP/USD downside capped by 7 –day MA, good to buy on dips
GBP/USD declined after hitting high of 1.36556 on hawkish US Fed statement. The pair dipped till 1.34525 and is currently trading around 1.35045. Fed has kept its interest rate unchanged and finally made formal announcem…
GBP/USD declined after hitting high of 1.36556 on hawkish US Fed statement. The pair dipped till 1.34525 and is currently trading around 1.35045.
Fed has kept its interest rate unchanged and finally made formal announcement that it will start to taper QE by Oct. Fed futures are pricing in 73.4% chance of a Dec hike compared to 48.6% a week ago.
On the higher side, near term resistance is around 1.36500 and any break above will take the pair till 1.3700/1.3750.
The near term support is around 1.3450 and any break below will drag the pair down till 1.3400/1.3300. The minor weakness only below 1.3150.
It is good to buy on dips around 1.3500 with SL around 1.34500 for the TP of 1.3630/1.3650.
