GBP/USD: Daily Outlook

• Cable is trading very flat for the past one week. The UK and EU has reached deal for the first phase on Friday and next phase on trade negotiations is expected to happen next week. The pair has recovered almost 100 pips from the low of 1.33029 made on Dec 15th 2017 and is currently trading around 1.33637.
   
• UK government next parliamentary debate on Brexit is to be held on Jan 16th and 17th. UK Nov public sector net borrowings came at £8.1 bn vs £8.9 bn.
   
• On the lower side, near term support is around 1.3300 and any break below will drag the pair to next level till 1.3225/1.3175. Short term bullish invalidation only below 1.30280.
   
• The near term resistance is around 1.3420 (trend line joining 1.35204 and 1.34654) and any break above will take the pair to next level till 1.3470/1.3520. Bullish continuation only above 1.3550.

It is good to sell on rallies around 1.3425-30 with SL around 1.3500 for the TP of 1.3300/1.3220.