FxWirePro: GBP/USD gains some upside momentum but still bearish
The GBP/USD pair inched higher on Thursday as risk sentiment remained fragile after much-awaited tax reform plans from U.S. President Donald Trump did not boost investor confidence as expected. Trump's proposal to slash …
The GBP/USD pair inched higher on Thursday as risk sentiment remained fragile after much-awaited tax reform plans from U.S. President Donald Trump did not boost investor confidence as expected.
Trump's proposal to slash tax rates for businesses and on overseas corporate profits returned to the U.S. didn't excite the markets, as it failed to offer details on how it would be paid for without increasing the country's deficit.
The pair hit session high at 1.2910, before retreating slightly to trade at 1.2901 in the afternoon US session.
However, further upside is expected to be limited as the pair finds strong resistance at 1.3000 which should limit further upside and bring decline towards lower levels in the short term.
To the upside, the strong resistance can be seen at 1.2934, a break above this level would expose the pair towards next resistance level at 1.3000.
To the downside immediate support can be seen 1.2856, a break below at this level will open the door towards next level at 1.2761.
