FxWirePro: GBP/USD trades weak on Brexit uncertainty, good to sell on rallies
GBP/USD is trading weak and declined more than 100 pips from the intraday high of 1.32058 on account of political uncertainty . The back to back resignation of Brexit Secretary David Davis and Foreign Secretary Boris Joh…
GBP/USD is trading weak and declined more than 100 pips from the intraday high of 1.32058 on account of political uncertainty . The back to back resignation of Brexit Secretary David Davis and Foreign Secretary Boris Johnson has increased political turmoil in UK. UK PM Theresa May has revealed her soft Brexit in full yesterday and is looking to strike free trade agreement with EU. GBP has not performed well after Brexit white paper as lot of political hurdles are there to complete Brexit process. Markets eye BOE Deputy Governor Jon Cunliffe speech today for further direction.
Technically near term resistance is around 1.3212 (20- day MA) and any convincing break above will take the pair till 1.3250/1.3296 (34- 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 1.310 and any break below will target 1.3045 (trend line support)/1.3000. The minor resistance is around 1.3150.
It is good to sell on rallies around 1.3155-60 with SL around 1.3210 for the TP of 1.3050/1.3000.
