Pound slides below 1.26 as dollar streangthens, upside capped

Pound near support, retracement on cards

Technical Overview: Pound currently trading at 1.2620 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 0.15 percent yesterday. PM Theresa May, after failing to get support for her Brexit deal announced her resignation which increased the bearish sentiment for pound. Labor leader Corbyn said that his party would do ‘whatever is necessary’ to prevent a no-deal Brexit, including backing a second referendum.

Suggestion: SELL GBPUSD TILL 1.2650 FOR 1.2590/2580 ELSE BUY ABOVE 1.2780 FOR 1.2850/2880

Important levels to watch:

Support Levels

S1: 1.2630 S2: 1.2600 S3: 1.2580

Resistance Levels

R1: 1.2660 R2:1.2680 R3: 1.2700

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