Pound heading to 1.28 against strong dollar and Brexit woes

Pound failing above 1.30, heading towards 1.2850

Technical Overview: Pound currently trading at 1.3010 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 decreased against USD by 0.52 percent yesterday. BOE kept interest rate unchanged at 0.75 percent. PM Theresa May had set a new deadline for passing the deal through the Parliament at July 2, which means the UK will have to participate in EU’s election, something May ‘deeply regrets.’ Meanwhile, Tory Brexiter Daniel Kawczynski said that a second referendum would be ‘inevitable’ if MPs don’t pass the deal.

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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