GBP/USD trade idea
- Cable slides lower after recovering till 1.31757 yesterday. The pair weakness was mainly due to political scandal and Brexit talks. The pair has formed temporary bottom around 1.30280 and further weakness below that level.
- US-UK 10 year bond yield on rise after dovish comment by BOE. UK 10 year gilts yields declined almost 200 basis point after the BOE monetary policy meeting.
- The pair has formed bearish flag pattern in the 4 hour chart and any minor bullishness can be seen only above 1.3210. The near term resistance is around 1.3180. Any short term bullish continuation only above 1.3380.
- On the lower side, near term major support is around 1.3100 and any violation below will drag the pair down till 1.30380/1.30270.
It is good to sell on rallies around 1.3175-1.3180 with SL around 1.3230 for the TP of 1.3100/1.30280.
- R1- 1.3180
- R2 1.3230
- R3- 1.3300
- S1- 1.3100
- S2- 1.3030
Source: FXWire Technicals