Pound near support as technical selling still on cards
Technical Overview: Pound currently trading at 1.2675 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 0.28 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 Committee met late failed to agree on a rule change which would allow to outs PM May. PM Theresa May, after failing to get support for her Brexit deal announced her resignation which might pressurize pound.
Suggestion: SELL GBPUSD TILL 1.2680 FOR 1.2630/2600 ELSE BUY ABOVE 1.2780 FOR 1.2850/2880
Important levels to watch:
S1: 1.2630 S2: 1.2600 S3: 1.2580
R1: 1.2660 R2:1.2680 R3: 1.2700