Pound strengthens on weak dollar but upside limited?
GDP data from UK came in at -19.8 percent against market expectations of -20.4 percent. Brexit is far from being resolved. France has adopted a tough line on fisheries, a sensitive topic in London. Moreover, both sides are at loggerheads on state aid and other topics. Neither Brussels nor Britain published any details on progress, undermining sterling's rally.
Technically Pound rose yesterday and testing h4 200ma level at 1.3015 level with downside support at 136ma at 1.2925. Seems a range bound in between these levels and one can scalp in between this range. A break upside h4 200ma immediate hurdle awaits at day 200ma at 1.3060 seems the rally could stop again there. a break of 136ma downside can test 1.2860 h4 50ma. So overall sell on rise is advised for the day.
Suggestion: SELL GBPUSD FROM 1.2985 SL ABV 1.3040 TGT 1.2920 ELSE BUY ABOVE 1.3060 FOR 1.3120/30 SL BELOW 1.3010
Technically Pound rose yesterday and testing h4 200ma level at 1.3015 level with downside support at 136ma at 1.2925. Seems a range bound in between these levels and one can scalp in between this range. A break upside h4 200ma immediate hurdle awaits at day 200ma at 1.3060 seems the rally could stop again there. a break of 136ma downside can test 1.2860 h4 50ma. So overall sell on rise is advised for the day.
Suggestion: SELL GBPUSD FROM 1.2985 SL ABV 1.3040 TGT 1.2920 ELSE BUY ABOVE 1.3060 FOR 1.3120/30 SL BELOW 1.3010