Pound rose sharply as MP’s rejected No Deal brexit

Pound bounce to 1.32, heading towards 1.35?

Technical Overview: Pound currently at 1.3245, currently trading above the psychological level 1.32 and above the key support 1.3150. A break upside 1.3280 can test immediate resistance 1.3350 and 1.3430 further. Downside support lies at 1.3130 and 1.3030 further which could limit the day fall, one can enter in ever dip till 1.3150-30 for upside said targets.

Fundamental: GBP fell against USD by 0.59 percent yesterday while GBPINR appreciated by 0.92 percent. GBP fell against USD yesterday when UK’s Attorney General Cox said that the legal risk remains unchanged that the UK will have no lawful means of leaving the Irish Backstop arrangement. Also, the European Research Group’s lawyers have rejected May’s latest Brexit proposals. The main concern of lawmakers is to remain trapped in the backstop forever, unable to leave the customs union once the transition period ends in 2020.

Suggestion: SELL GBPUSD TILL 1.3250-60 FOR 1.3130-3100 AND BUY AGAIN FROM 1.3130 FOR 1.3300/1.3350

Important levels to watch:

Support Levels

S1: 1.3230 S2: 1.3130 S3: 1.3080

Resistance Levels

R1: 1.3250 R2:1.3280 R3: 1.3330

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