- Sterling breaks the low made on Jul 7th 2016 (BrExit low) and made a fresh record low at 1.27344 at the time of writing.
- Cable declined sharply after Prime Minister Theresa May said UK will trigger Article 50 before the end of March 2017.
- GBP/USD has broken major support at 1.27893 and declined till 1.2735. Short term trend is weak as long as resistance 1.2960 (7- day EMA) holds .Any break above 7- day EMA (1.2960) will take the pair till 1.3000/1.3580 is possible. The minor resistance is around 1.2860 (support turned into resistance).
- On the lower side, any break below 1.2735 will drag the pair further down till 1.2700/1.2507 (161.8% retracement of 1.2865 and 1.3445).
- Overall bearish invalidation only above 1.3480.
It is good to sell on rallies around 1.2850 with SL around 1.3000 for the TP of 1.2510.
