Pound below 2650, heading to 1.25?
Technical Overview: Pound currently trading at 1.2640 which trading below the downward channel support 1.2700, currently trading below the psychological level 1.27 and below the key support 1.2680 which turned to resistance now. A break upside 1.2680 can check 1.2730/2750 further. Downside support lies at 1.2515 (Jan 03rd 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 1.2800 for upside said targets.
Fundamental: GBP decreased against USD by 0.35 percent yesterday. PM May surprised the markets this Tuesday by announcing a new Brexit bill, which details will be unveiled in the next few days, clarifying that she still opposes a second referendum. DUP Deputy Dodds said that while they might need to wait to see the text of the ‘new bill,’ it was clear that fatal flaws remain unchanged. UK April’s inflation increased by less than expected, up by 0.6% MoM and by 2.1% YoY.
Suggestion: SELL GBPUSD TILL 1.2650-60 FOR 1.2580/2550 ELSE BUY ABOVE 1.2780 FOR 1.2830/2845
Important levels to watch:
S1: 1.2630 S2: 1.2600 S3: 1.2580
R1: 1.2660 R2:1.2680 R3: 1.2700