FxWirePro: GBP/USD trades weak on dovish BOE’s Broadbent, good to sell on rallies
GBP has broken the low of 1.28545 made on Jun 10th 2017 and hits fresh one week low at 1.28150 at the time of writing after dovish comment by BOE Broadbent. It is currently trading around 1.28189. BOE Deputy Governor fai…
GBP has broken the low of 1.28545 made on Jun 10th 2017 and hits fresh one week low at 1.28150 at the time of writing after dovish comment by BOE Broadbent. It is currently trading around 1.28189.
BOE Deputy Governor fails to address outlook on interest rates and monetary policy stance. He also warned of Brexit risk and cut in trade with EU would hurt economy.
In the four hour chart, the pair is trading well below Tenkan-Sen (1.2879) and Kijun-Sen (1.2907).
The near term resistance is around 1.2875 (89- 4H EMA) and any break above will take the pair till 1.29268/1.2980. The pair formed temporary top around 1.30475 on May 18th 2017. Any violation above 1.3050 will take the pair till 1.3110 (113% retracement of 1.30475 and 1.25894)/1.3150/1.33150 (88.6% retracement of 1.3440 and 1.19040).
On the lower side, near term minor support is around 1.2820 and any break below will drag the pair down till 1.2758 (61.8% retracement of 1.2589 and /1.2700 .
It is good to sell on rallies around 1.2845-1.2850 with SL around 1.2910 for the TP of 1.2750
