FxWirePro: GBP/USD trades weak after dovish hike by BOE, market eyes Brexit negotiations
Cable declined sharply in the previous week after BOE monetary policy meeting. BOE hiked rates as expected for the first time since 2007. But dovish hike by Central bank has pulled down the pound prices sharply. The pair…
Cable declined sharply in the previous week after BOE monetary policy meeting. BOE hiked rates as expected for the first time since 2007. But dovish hike by Central bank has pulled down the pound prices sharply. The pair dipped till 1.30398 yesterday. It is currently trading around 1.31043.
Brexit negotiations will remain key focus for this week which will be big drag for the Pound. Market awaits Theresa May speech at conference of the Confederation of British industries for further direction.
Technically, pair is facing strong support a 1.30270 and any break below will drag the p[air to next level till 1.300/1.2950. Any close below 1.3000 confirms major trend reversal, a dip till 1.27780 likely.
On the higher side, near term resistance is around 1.3140 and any break above will take the pair till 1.3171 (55- day EMA)/1.3230. Minor trend reversal only above 1.3380.
It is good to sell on rallies around 1.3135-14 with SL around 1.3200 for the TP of 1.2785.
