Cable declined till 1.2850 yesterday after BOE monetary policy. The central bank has kept its rates unchanged and has cut its growth forecast to 1.2% from 1.7% due of Brexit uncertainty. But GBPUSD recovered sharply more than 150 pips till 1.29962 and is currently trading around 1.29631.
The deadline for Brexit at Mar 29th and markets will react positively if there is any extension of the deadline.PM May to meet Irish PM Varadkar over dinner after May failed to reach breakthrough on the Irish Backstop.
Technically the pair is facing strong resistance around 1.3000 and any break above targets 1.3050/1.3090. Minor trend reversal only above 1.3220.
The near term support is around 1.2920 and any break below will drag the pair till 1.2895/1.2850. Any break below 1.2850 confirms bearish continuation.
It is good to buy on dips around 1.2905-08 with SL around 1.2850 for the TP of 1.3000/1.3045.
