FxWirePro: GBP/USD trades weak after continuous negative Brexit news , dip till 1.3050 is likely
GBP/USD has halted its bullishness after hitting 2 week high yesterday. The pair declined sharply after showing a minor jump above 50- day MA. GBPUSD had recovered sharply after resignation of David Davis Brexit Secretar…
GBP/USD has halted its bullishness after hitting 2 week high yesterday. The pair declined sharply after showing a minor jump above 50- day MA. GBPUSD had recovered sharply after resignation of David Davis Brexit Secretary as sign that a “softer” Brexit more likely. But heavy slide of more than 150 pips on the news that Foreign Secretary Boris Johnson would also be resigning. UK GDP data came at 0.3% as expected but manufacturing production came at 0.4% compared to forecast of 1.0%. The pair hits low of 1.31896 yesterday and shown a minor recovery. It is currently trading around 1.32541.
Technically near term resistance is around 1.3300 and any convincing break above will take the pair till 1.3355 (50-day MA)/1.3400/ 1.3465. The pair should close well above 1.3300 on daily basis for bullish continuation.
On the lower side, near term major support is around 1.3228 (20- day MA) and any break below will target 1.3150/1.3100/ 1.3045 (trend line support)/1.3000.
It is good to sell on ralliess around 1.3255-60 with SL around 1.3305 for the TP of 1.3095/1.3050.
