- GBP/USD has halted its bullishness after hitting 2 week high at 1.33625. The pair declined sharply after showing a minor jump above 50- day MA. The renewed political uncertainty is weighing on Pound. UK Foreign Secretary Boris Johnson resigned 15 hours after resignation of David Davis Brexit Secretary. According CFTC commitment of traders GBP has added more number of shorts +7300 contracts to 28.780 on account of political turmoil.UK GDP data came at 0.3% as expected but manufacturing production came at 0.4% compared to forecast of 1.0%. BOE is expected to hike rates in Aug but Brexit is the major problem which is dragging GBP prices down.BOE governor Mark Carneyis scheduled to speak about the global financial crisis at the National Bureau of Economic Research. The pair hits intraday high of 1.32853 at the time of writing and is currently trading around 1.32365.
- 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 rallies around 1.3255-60 with SL around 1.3305 for the TP of 1.3095/1.3050.
