- GBP/USD declined on Monday as view that Bank of England would keep interest rates at record lows for the coming months weighed on British pound.
- Sterling recorded its biggest daily falls against the dollar in more than six weeks on Friday, after a stronger-than-expected U.S. labour market report brought forward expectations for more interest rate hikes from the Federal Reserve.
- Sterling was down 0.1 percent at $1.3025 against the dollar, having pulled away from an 11-month high above $1.32 at the end of last week.
- Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.2989 which should limit further upside and bring decline towards lower levels in the short term.
- To the upside, immediate resistance can be seen at 1.2954, a break above this level would expose the cable to next resistance level at 1.2969 levels.
- To the downside strong support can be seen at 1.2927, a break below at this level will open the door towards next level at 1.2900.
Resistance Levels
R1: 1.3060 (Daily high)
R2: 1.3116 (61.8 % Retracement level)
R3: 1.3162 (Aug 4th high)
Support Levels
S1: 1.3012 (50 % Retracement level)
S2: 1.2948 (July 21st lows)
S3: 1.2900 (Psychological levels)
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