FxWirePro: GBP/USD recovers sharply from low of 1.3460, good to buy on dips
GBP/USD has declined more than 160 pips sharply after more dovish BOE monetary policy. BOE has kept its interest rates unchanged at 0.5% and said inflation has fallen more than expected. In addition Interest rates is exp…
GBP/USD has declined more than 160 pips sharply after more dovish BOE monetary policy. BOE has kept its interest rates unchanged at 0.5% and said inflation has fallen more than expected. In addition Interest rates is expected to rise at a gradual pace. The pair hits low of 1.3460 and recovered sharply after weaker than expected US CPI data. US CPI came at 0.2% for the month of Apr compared to forecast of 0.3%. Cable jumped till 1.35820 and is currently trading around 1.35759.
On the higher side, 1.3620 will be acting major resistance and any convincing break above will take the pair slightly till 1.3640 (55- 4H EMA)/1.36659. Major trend reversal only above 1.4000.
The near term support is around 1.3460 and any break below will drag the pair till 1.3400/1.3345.
It is good to buy on dips around 1.3500 with SL around 1.3460 for the TP of 1.3620/1.3680.
