The Cable declined sharply on Friday after Bank of Japan rate cut triggered gains for US dollar against Sterling. Sterling was further hammered down in the US session after the release of US GDP data which came in line with expectation at 0.7%.
- Currency pair is trading below downward trend line in 1 hour chart and daily pivot point at 1. 4333 which suggests further bearish momentum towards downwards in the short term.
- Currently the cable is trading around 1.4180 levels, it is set to decline further towards 1.4120 later towards 1.4060 levels in the short term.
- To the upside, the strong resistance can be seen at 1.4249, a break above this level would expose to cable to next resistance level at 1.4300.
- To the downside immediate support can be seen at 1.4147, a break below will open the door towards next level at 1.4084.
Recommendation: Go short around 1.4230, targets 1.4120, 1.4060, SL 1.4300
Resistance Levels
R1: 1.4200 (50% Retracement Level)
R2: 1.4249 (61.8% Retracement Level)
R3: 1.4275 (Session high)
Support Levels
S1: 1.4147 (38.2% Retracement Level)
S2: 1.4084 (23.6% Retracement Level)
S3: 1.4000 (Psychological levels)
