FxWirePro: GBP/USD upside capped by trend line resistance, good to sell on rallies
Cable has shown a jump of almost 200 pips from the low of 1.3711. The pair is trading weak and hits intraday low of 1.38579 and is currently trading around 1.38610. USD weakness was mainly due to trade war and protection…
Cable has shown a jump of almost 200 pips from the low of 1.3711. The pair is trading weak and hits intraday low of 1.38579 and is currently trading around 1.38610.
USD weakness was mainly due to trade war and protectionism that was dominating the market. . US President Donald Trump said that US which has nearly USD 800 billion deficit is ready for trade war with other countries. Market awaits US ADP employment data for further direction.
Technically on the lower side, near term support is around 1.3835 (20- 4H MA) and any break below will drag the pair down till 1.3800/1.3760/1.3700.
The near term resistance is around 1.3920 (trend line resistance) and break above will take the pair till 1.3960/1.4000. The pair should break above 1.4070 for further upside.
It is good to sell on rallies around 1.3885-90 with SL around 1.3950 for the TP of 1.3760/1.3700.
