- GBP/USD has halted its bullishness after hitting 2 week high at 1.33625. The pair declined more than 150 pips from the high. 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. Markets eyes Brexit white paper which provide more details about the plan how government intends to deliver Brexit without crossing Theresa May’s red lines. US Producer price data came at 3.4% ,the largest gain since Nov 2011. On the data front US CPI data is major to be released at 12:30 GMT.
- 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 1.3190 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.
