Pound stucked in tight range with upside bias against weak dollar and Brexit extension

Pound above 1.30, range trading with upside bias

Technical Overview: Pound currently at 1.3065, currently trading above the psychological level 1.30 and below the key resistance 1.3120. A break upside 1.3120 can test immediate resistance 1.3180 and 1.3230 further. Downside support lies at 1.3000 and 1.2980 further which could limit the day fall, one can enter in every dip till 1.3020 for upside said targets.

Fundamental: GBP rose against USD by 0.6 percent last week. Services PMI from UK came in at 48.9 against market expectations of 51 for Mar’19. Meanwhile, Renewed hopes about a Brexit solution increased following PM May’s offer to the opposition and the UK Parliament plan to rush a bill to prevent a hard Brexit. The Parliament could meet again next Monday, but they need to come up with something before April 10 EU summit if they want to extend Brexit beyond the April 12 deadline.

Suggestion: BUY GBPUSD ABOVE 1.3050 FOR 1.3120/3150 AND SELL FROM 1.3230 FOR 1.3120/3080

Important levels to watch:

Support Levels

S1: 1.3030 S2: 1.2980 S3: 1.2930

Resistance Levels

R1: 1.3120 R2:1.3180 R3: 1.3230

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