British Pound dropped below 1.4100 level to hit fresh 7-year low against the greenback on Tuesday, as the pair was weighed down by Brexit uncertainty. The pair recovered towards 1.4120 in the Early European session. However, the bears were back in the US session as pair was pushed back towards lower levels on renewed weakness.
- Currently the pair is trading around 1.4075 levels , it is set to decline further towards 1.4000and later 1.3980 level.
- Technically in the 4 hour chart the 55, 30 and 20 MA depicts a clear bearish slope above the current price action, the RSI is indicating towards downside at 33.
- To the upside, the strong resistance can be seen at 1.4120, a break above this level would expose the cable to next resistance level at 1.4188 levels.
- To the downside strong support can be seen at 1.4060, a break below at this level will open the door towards next level at 1.4000.
Recommendation: Go short around 1.4120, targets 1.4000, 1.3980, SL 1.4180
Resistance Levels
R1: 1.4120(50% Retracement level)
R2: 1.4188 (61.8 % Retracement level)
R3: 1.4237 (21 DMA)
Support Levels
S1: 1.4060 (38.2 % Retracement level)
S2: 1.4000 (Psychological levels)
S3: 1.3964 (23.6 % Retracement level)
