FxWirePro: GBP/USD outlook weaker on renewed downside pressure
GBP/USD declined on Tuesday as sterling was weighted down on worries about a possible second Scottish independence referendum and the triggering of Article 50, which will formally begin the negotiations that will take Br…
GBP/USD declined on Tuesday as sterling was weighted down on worries about a possible second Scottish independence referendum and the triggering of Article 50, which will formally begin the negotiations that will take Britain out of the EU.
A stronger U.S. dollar also added losses for the Sterling as the dollar firmed on expectations that U.S. Federal Reserve will hike interest rate on Wednesday.
The Fed starts a two-day monetary policy meeting on Tuesday. Fed funds futures have priced in a 95 percent chance the Fed will nudge rates higher on Wednesday.
Further upside for this pair is expected to be limited as strong resistance level at 1.2251 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2145, a break above this level would expose the cable to next resistance level at 1.2186 levels.
To the downside strong support can be seen at 1.2110, a break below at this level will open the door towards next level at 1.2062.
