FxWirePro: GBP/USD trades well above 1.3300 amid David Davis resignation, good to buy on dips
GBP/USD is trading higher for the fifth consecutive days and hits 2- week high. GBP was trading higher against all majors on Friday after cabinet meeting at chequers and slightly weaker than expected wage growth in U.S. …
GBP/USD is trading higher for the fifth consecutive days and hits 2- week high. GBP was trading higher against all majors on Friday after cabinet meeting at chequers and slightly weaker than expected wage growth in U.S. GBP has declined slightly after resignation of Brexit secretary David Davis. The pair hits intraday low of 1.3285 and shown a good recovery. David Davis said on BBC Radio 4 that he “proposed one approach, May choose another one that is more conciliatory to the EU. The good recovery in Pound above 1.3300 shows that traders have taken Davis exit as a sign that a soft Brexit now more likely.
Technically near term resistance is around 1.3410 (55- day EMA) and any convincing break above will take the pair till 1.3465/1.3500. The pair should close well above 1.3300 on daily basis for bullish continuation.
On the lower side, near term major support is around 1.3235 (20- day MA) and any break below will target 1.3200/1.3150/1.3100/ 1.3045 (trend line support)/1.3000.
,It is good to buy on dips around 1.3300 with SL around 1.3235 for the TP of 1.3465/1.3500.
