FxWirePro: GBP/USD neutral in the near-term, scope for downward resumption
GBP/USD declined on Monday as political uncertainty in UK and stronger dollar across the board weighed on sterling. The U.S. rose strengthened across the board, helped by comments from New York Federal Reserve President …
GBP/USD declined on Monday as political uncertainty in UK and stronger dollar across the board weighed on sterling.
The U.S. rose strengthened across the board, helped by comments from New York Federal Reserve President William Dudley suggesting the central bank remained on track to raise U.S. interest rates further despite recent disappointing inflation data.
Traders were cautious as Britain formally began negotiations to leave the European Union and domestic political uncertainty dented appetite for the Sterling.
The pair made daily highs at 1.2814 but dipped to trade at 1.2751 in the early US session.
Further upside for this pair is expected to be limited as strong resistance level at 1.2862 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2812, a break above this level would expose the cable to next resistance level at 1.2862 levels.
To the downside strong support can be seen at 1.2748, a break below at this level will open the door towards next level at 1.2674.
