- GBP/USD has lost more than 250 pips from the high 1.32960 made on Monday on account of weak UK data and Brexit uncertainty. UK CPI Y-o-Y came at 2.4% compared to forecast 2.6% and core CPI came at 1.9% y-o-y slightly below previous month 2.1%. UK inflation m/m came at 0% compared to forecast of 0.2% vs 0.4% in the month of May.UK June jobless data released yesterday came better than expected but wage growth has fallen to lowest level in six months. The decline in wage growth could dampen expectations of an interest rate rise next month. It hits intraday low of 1.3010 and is currently trading around 1.3040.
- Technically near term resistance is around 1.3100 (support turned into resistance) and any convincing break above will take the pair till 1.31500/1.3200 (5- day MA). The pair should close well above 1.3300 on daily basis for bullish continuation.
- On the lower side, near term major support is around 1.3000 and any break below will target 1.2900/1.2850.
It is good to sell on rallies around 1.3055-60 with SL around 1.311 for the TP of 1.2950/1.2900.
Resistance
R1- 1.310
R2 –1.3150
R3- 1.3200
Support
S1- 1.3000
S2-1.2950
S3-1.2900
