Pound slides down post BoE posted its inflation report as kept rates stable

Pound failing above 1.30, heading towards 1.2850

Technical Overview: Pound currently trading at 1.3020 which trading below the downward channel support, currently trading above the psychological level 1.30 and 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 1.2930 and 1.2900 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 upside said targets.

Fundamental: GBP rose against USD by 0.02 percent yesterday. Britain’s central bank said it might need to raise its benchmark interest rate more than once over next three years. Uncertainty around Brexit and slowing global growth are still weighing on economic activity in Britain, but the bank raised its growth forecast for this year to 1.6 percent, up from 1.3 percent. Also, the bank kept interest rates unchanged at 0.75 percent.

Suggestion: SELL GBPUSD BELOW 1.2985 FOR 1.2920/2880 ELSE BUY ABOVE 1.3080 FOR 1.3180/3200

Important levels to watch:

Support Levels

S1: 1.2970 S2: 1.2950 S3: 1.2930

Resistance Levels

R1: 1.3050 R2:1.3080 R3: 1.3120

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