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 increased against USD by 0.05 percent yesterday. BOE kept interest rate unchanged at 0.75 percent. Following another round of cross-party talks, Labour’s leader Corbyn crossed the wires saying that the government hasn’t made a ‘big offer yet’ that can get the two parts closer to a consensus. The tense political situation in the kingdom will likely prevent the GBP from appreciating beyond short-intraday spikes.
Suggestion: SELL GBPUSD BELOW 1.2985 FOR 1.2920/2880 ELSE BUY ABOVE 1.3080 FOR 1.3180/3200
Important levels to watch:
S1: 1.2970 S2: 1.2950 S3: 1.2930
R1: 1.3050 R2:1.3080 R3: 1.3120