FxWirePro: GBP/USD trade Idea

GBPUSD was trading highly volatile yesterday and showing more than 200 point movement on either direction on account of Brexit vote in Parliament. The House of Common rejected May Brexit deal 432 to 200 was more severe than anticipated and this has opened possibility of a no- deal Brexit. Markets eye no-confidence vote at 7 PM GMT for further direction. Theresa May is expected to win no-confidence vote as most of opposition is willing to support UK PM to avoid general elections. The pair hits intraday high of 1.28957 and is currently trading around 1.28624.

UK CPI data came slightly weaker than estimate. CPI data eases to 2.1% y/y down from 2.3% previous month.

On the higher side, any break above 1.2925 confirms minor bullishness and a jump till 1.2965/1.3000 is likely.

The near term support is around 1.2800 and any violation below targets 1.2760/1.2700. Any bearish continuation only below 1.2660.

It is good to buy on dip around 1.2755-60 with SL around 1.2660 for the TP of 1.3000.

Resistance

R1- 1.2925

R2 - 1.2965

R3- 1.3000

Support               

S1- 1.2800

S2- 1.2760

S3- 1.2660