FxWirePro: GBP/USD trades higher on weak US dollar, good to buy on dips
Cable is trading marginally up almost 0.5% for the day on account weak US dollar. The dollar index was trading weak for the past five days on account of mixed economic data and declining US 10 –year yield.The pair has br…
Cable is trading marginally up almost 0.5% for the day on account weak US dollar. The dollar index was trading weak for the past five days on account of mixed economic data and declining US 10 –year yield.The pair has broken major resistance at 1.3500 and jumped till 1.35125 at the time of writing. It is currently trading around 1.34549.
US workers has filed 245000 initial jobless claims for the week that ended Dec 23rd compared to forecast of 240000. The claims remained well below thresh hold of 300000 for the 147th straight week longest stretch since 1970.
On the lower side, near term support is around 1.3390 (100- 4H MA) and any break below will drag the pair to next level till 1.3350/1.330/1.3220. Short term bullish invalidation only below 1.30280.
The near term resistance is around 1.3550 and any break above will take the pair to next level till 1.3600/1.3655. Bullish continuation only above 1.3550.
It is good to buy on dips around 1.3425-30 with SL around 1.3380 for the TP of 1.3550/1.3600.
