FxWirePro: GBP/USD resumes downside after BoE's Broadbent speech, scope for further downside

• GBP/USD declined on Tuesday as sterling attracted sellers after a speech by Bank of England Deputy Governor Ben Broadbent left the outlook for interest rates unanswered.
   
• In a speech that focused on the benefits of globalisation, Broadbent warned that less trade with the EU would damage Britain's comparative advantage in exports of financial and business services. 
   
• Sterling weakened against dollar to the day's low of $1.2838 from $1.2920 after the speech, reversing earlier gains.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.2953 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2894, a break above this level would expose the cable to next resistance level at 1.2927 levels.
   
• To the downside strong support can be seen at 1.2838, a break below at this level will open the door towards next level at 1.2800.
  
  Resistance Levels
  
  R1:  1.2894 (50 % Retracement level)
  
  R2: 1.2927 (Daily high)
  
  R3: 1.2953 (61.8 % Retracement level)
  
  Support Levels
  
  S1: 1.2838 (38.2 % Retracement level)                   
  
  S2: 1.2800 (Psychological levels)
  
  S3: 1.2768 (23.6 % Retracement level)

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