- 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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