FxWirePro: GBP/USD trades well below 50 –day MA, good to sell on rallies

• Cable declined sharply yesterday almost 165 pips yesterday from the high of 1.39159. The pair continuing its weakness for fourth consecutive days and hits intraday low of 1.37272 and is currently trading around 1.37496.
   
• USD bullishness was mainly due to optimistic comments from Powell on U.S. economy and inflation. This statement increased chance of more than three hikes by Fed. Market awaits US ISM manufacturing index and US PCE index data for further direction.
   
• Technically on the lower side, near term support is around 1.36900 (61.8% fib) and any break below will drag the pair down till 1.3650/1.3600.  
   
• The near term resistance is around 1.3815 (50 day MA) and break above will take the pair till 1.3860 /1.392. The pair should break above 1.4070 for further upside.

It is good to sell on rallies around 1.3785-90 with SL around 1.3860 for the TP of 1.3700/1.3660.