Pound near support, will it retrace technically?
Technical Overview: Pound currently trading at 1.2665 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 0.06 percent yesterday. The Brexit withdrawal bill that PM May was supposed to present this Friday won’t be published or debated until early June. The 1922 Committee met late Thursday but failed to agree on a rule change which would allow to outs PM May. However, the treasurer of the Committee, Geoffrey Clifton-Brown, said that they will allow a new no-confidence vote in the PM if she doesn’t announce her resignation by Friday.
Suggestion: SELL GBPUSD TILL 1.2700 FOR 1.2580/2550 ELSE BUY ABOVE 1.2830 FOR 1.2880/2900
Important levels to watch:
S1: 1.2630 S2: 1.2600 S3: 1.2580
R1: 1.2660 R2:1.2680 R3: 1.2700