FxWirePro: GBP/USD trades weak after dovish BOE, good to sell on rallies
GBP/USD has reached a new 11 month high yesterday at 1.32667 and dropped sharply yesterday after dovish comment by BOE. BOE voted 6-2 to keep interest rates unchanged and has trimmed its growth forecast but kept its infl…
GBP/USD has reached a new 11 month high yesterday at 1.32667 and dropped sharply yesterday after dovish comment by BOE. BOE voted 6-2 to keep interest rates unchanged and has trimmed its growth forecast but kept its inflation forecast unchanged. The pair decline till 1.31125 and is currently trading around 1.31387.
Cable has closed well below yesterday low of 1.3190 and this confirms major weakness, a decline till 1.3000 is possible. A break below 1.2930 low made on Jul 20th confirms that it has formed a top at 1.32680 and a decline till 1.28110 (Jul 12th 2017 low) likely.
On the higher side , near term minor resistance is around 1.3160 and any break above will take the pair till 1.3190 (Support turned into resistance )/1.32680. The major resistance is at 1.32781 (161.8% retracement of 1.27747 and 1.19860) and break above targets 1.3300/1.3350.
It is good to sell on rallies around 1.3150-55 with SL around 1.3200 for the TP of 1.3060/1.3000.
