GBP/USD hits 2-month low of 1.2776 on Friday as geopolitical risks favor US dollar.the pair recovered slightly due to profit booking and mixed US GDP data. It came better then expected at 3.5% compared to forecast of 3.3% while inflation as measured by PCE rose 1.6% annual rate compared to forecast of 2%. The pair hits high of 1.284145 and shown a minor dip. It is currently trading around 1.28125.
Markets eye UK budget speech today for further direction. But Brexit uncertainty and no proper deal on Irish borders is putting pressure on Pound sterling.
On the higher side, near term resistance is around 1.2865 and any break above targets 1.2925/1.2960.
The major support is at 1.2770 and any violation below will drag the pair down till 1.2745/1.2685.
It is good to buy on dips around 1.278-85 with SL around 1.2745 for the TP of 1.2925.
