Pound slides as trade war and UK tensions hit

Pound sideways as tension in UK still intact

Technical Overview: Pound currently trading at 1.2956 which trading below the downward channel support, currently trading below the psychological level 1.30 and below the key resistance 1.3050. A break upside can check 1.3120 and can extend till 1.3180 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 for downside 2900/2880 which could be a good strategy for the day until it stays above 1.3120 for upside said targets.

Fundamental: GBP decreased against by 0.34 percent yesterday. In the UK, cross-party talks between the government and opposition Labour continued this Monday, although the lack of progress persists, denting further demand for Sterling. The tense political situation in the kingdom will likely prevent the GBP from appreciating beyond short-intraday spikes.

Suggestion: SELL GBPUSD TILL 1.2975 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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