Pound fail above 1.31, slips below key support 3050
Technical Overview: Pound currently trading at 1.3045 which trading below the downward channel support, currently trading below the key resistance 1.3120. A break upside 1.3120 can test next resistance 1.3180 and 1.3230 further. Downside support lies at 1.2985 and 1.2930 further which could extend the fall till 1.2775 (Feb 02, 2019 low) and 1.2750, one can enter sell in every rise which could be a good strategy for the day until it stays above 1.3120 for downside said targets.
Fundamental: GBP rose against USD by 0.87 percent yesterday. EU members are ready to provide extension till 31st Oct 2019. Also, Talks between PM May and Labour leader Corbyn came to no right end, stalling last week amid May holding on to her ‘red lines’ as Corbyn said. Conservatives have already tried to ousted May last December, and the rules state that they can’t challenge her authority within the first year afterward, although rules can always be changed. BOE will be holding their monetary policy stance today.
Suggestion: SELL GBPUSD BELOW 1.3040 FOR 1.2985/2965 ELSE BUY ABOVE 1.3120 FOR 1.3180/3200
Important levels to watch:
S1: 1.2985 S2: 1.2950 S3: 1.2930
R1: 1.3080 R2:1.3120 R3: 1.3180