Sterling weakness continues as dollar travels north

Pound below 2800 , getting more weak

Technical Overview: Pound currently trading at 1.2735 which trading below the downward channel support 1.2780, currently trading below the psychological level 1.28 and below the key resistance 1.3000. A break upside 1.2880 can check 1.30 and 1.3120 further. Downside support lies at 1.2700 and 1.2675 (Jan 15th, 2019 low). One can enter sell in every rise for downside said levels which could be a good strategy for the day until it stays above 1.3000 for upside said targets.

Fundamental: GBP decreased against USD by 1.63 percent last week. 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. Meanwhile, wages growth eased to 3.2% from 3.5%, also missing the market’s forecast of 3.4%.

Suggestion: SELL GBPUSD TILL 1.2750 FOR 1.2690/2670 ELSE BUY ABOVE 1.2830 FOR 1.2930/2950

Important levels to watch:

Support Levels

S1: 1.2730 S2: 1.2700 S3: 1.2680

Resistance Levels

R1: 1.2780 R2:1.2830 R3: 1.2880

Leave A Reply