FxWirePro: GBP/USD neutral in the near-term, scope for downward resumption
The GBP/USD struggled for direction on Wednesday as investors awaited for first quarter growth numbers due on Friday in a week so far dominated by events in the eurozone. Besides the gross domestic product numbers due on…
The GBP/USD struggled for direction on Wednesday as investors awaited for first quarter growth numbers due on Friday in a week so far dominated by events in the eurozone.
Besides the gross domestic product numbers due on Friday, investors are also on the lookout highly anticipated US tax plan.
President Donald Trump is proposing to slash the corporate tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States.
The biggest tax cut in U.S. history due to be released later on Wednesday would cut the business tax rate to 15 percent, including for small businesses.
Further upside in this pair should be limited as sterling is set to weaken against the greenback in the short term.
To the upside, immediate resistance can be seen at 1.2859, a break above this level would expose the cable to next resistance level at 1.2937 levels.
To the downside strong support can be seen at 1.2760, a break below at this level will open the door towards next level at 1.2700.
