FxWirePro: GBP/USD slightly weak after UK CPI data, good to buy on dips
GBP/USD has jumped sharply almost 360 pips from the minor bottom of 1.3450. The pair breaks 1.3800 for the first time since Brexit vote. The main reason for jump is that broad weakness of US dollar and hopes of “soft: Br…
GBP/USD has jumped sharply almost 360 pips from the minor bottom of 1.3450. The pair breaks 1.3800 for the first time since Brexit vote. The main reason for jump is that broad weakness of US dollar and hopes of “soft: Brexit.
Spain and Netherlands support for soft Brexit has pushed the pound sterling higher. GBPUSD has shown a minor decline after UK inflation data. UK CPI data came at 3% in line with analyst estimate but slightly below Nov rate at 3.1%. The pair dipped 30 pips and is expected to show a minor dip due to over bought in daily chart.
The near term major support is around 1.3730 (55- H EMA) and any break below will drag the pair to next level till 1.3680 (38.2% fibo)/1.3617 (200- H EMA).
On the higher side, 1.3820 will be acting as major resistance and break above targets 1.3900/1.4000.
It is good to buy on dips around 1.3665-60 with SL around 1.3600 for the TP of 1.3820
