FxWirePro: GBP/USD trades well below trend line support, good to sell on rallies
Cable declined sharply yesterday almost 140 pips after Fed Powell congress testimony from the high of 1.39965. The pair continuing its weakness for second consecutive day and hits intraday low of 1.38133 and is currently…
Cable declined sharply yesterday almost 140 pips after Fed Powell congress testimony from the high of 1.39965. The pair continuing its weakness for second consecutive day and hits intraday low of 1.38133 and is currently trading around 1.38117.
Powell was highly optimistic and said that U.S. economy was doing very well and inflation will rise in the coming months to 2%.This statement increased chance of more than three hikes by Fed.
Technically on the lower side, near term support is around 1.3800 and any break below will drag the pair down till 1.37600 (Feb 9th low)/1.3700. Short term bullish invalidation below 1.3800 (Feb 14th low).
The near term resistance is around 1.4050 and break above will take the pair till1.4145. The pair should break above 1.4145 for further upside.
It is good to sell on rallies around 1.3855-60 with SL around 1.3920 for the TP of 1.3760/1.3700.
