FxWirePro: GBP/USD recovers on board based dollar selling, good to buy on dips
GBP/USD has shown a huge recovery of more than 350 pips after hitting low of 1.29575 yesterday. The major recovery happened on account broad based US dollar selling after Trump’s criticism on fed rate hike and to impose …
GBP/USD has shown a huge recovery of more than 350 pips after hitting low of 1.29575 yesterday. The major recovery happened on account broad based US dollar selling after Trump’s criticism on fed rate hike and to impose fresh round of trade tariff of $505 billion in Chinese goods imported to the US.Pound sterling was trading weak after weaker than expected UK macro data would dampen the chance of rate hike by BOE in August month.
Technically near term resistance is around 1.3160 (support turned into resistance) and any convincing break above will take the pair till 1.3200 (5- day MA)/1.3260. The pair should close well above 1.3300 on daily basis for bullish continuation.
On the lower side, near term major support is around 1.3000 and any close below will target 1.2900/1.2850.
It is good to buy on dips around 1.3055-60 with SL around 1.3000 for the TP of 1.3200/1.3260.
