FxWirePro: GBP/USD rises as US administration-Fed feud takes ugly turn

• GBP/USD rose  on Monday  as the U.S. dollar weakened following fresh turmoil surrounding Federal Reserve Chair Jerome Powell.

• Powell said the Trump administration had threatened him with a criminal indictment related to congressional testimony he delivered last summer, escalating a long-running feud between the White House and the central bank. 

•Powell said the Trump administration had threatened him with a criminal indictment related to congressional testimony he delivered last summer, escalating a long-running feud between the White House and the central bank.

The episode has reignited concerns over the independence of the Federal Reserve, with market participants increasingly speculating that any future Fed chair could be more politically compliant.

• The rally lifted cable to its highest level since Thursday, surpassing Friday’s peak of 1.3450.

• Technical signals are  strongly bearish as RSI is   at 54, daily momentum studies  5, 9 and 10 DMAs are trending up.

•   Immediate resistance is located at 1.3463( SMA20), any close above will push the pair towards 1.3491(38.2%fib)

•  Strong support is seen at 1.3378(50%  fib) and break below could take the pair towards 1.3329(Lower BB).

  Recommendation: Good to buy around 1.3430 with stop loss of 1.3350 and target price of 1.3500