• FxWirePro: GBP/USD trade idea

    Source: FxWire Pro - Technicals / 02 Jan 2018 07:45:22   America/New_York

    • Cable is trading higher and breaks major resistance at 1.3550 level in the European session. The pair declined mildly after slightly weaker than expected UK manufacturing PMI data. The rise in pound sterling was mainly due to weakness in US dollar index. The pair hits high of 1.35663 and is currently trading around 1.3560.
       
    • UK manufacturing PMI came at 56.3 for the month of Dec compared to forecast of 57.90.The manufacturing output, new orders and employment increased sharply but decline was mainly due to input cost and price inflation.
       
    • On the lower side, near term support is around 1.3490 (10- 4H MA) and any break below will drag the pair to next level till 1.3445 (4H Kijun-Sen)/1.3360 (200- 4H EMA)/1.3300. Short term bullish invalidation only below 1.30280.
       
    • The near term resistance is around 1.3550 and any break above will take the pair to next level till 1.3600/1.3655. Bullish continuation only above 1.3550.

    It is good to buy on dips around 1.3500 with SL around 1.3435 for the TP of 1.3650.

     

    Resistance
     

    R1- 1.3560
     

    R2 -1.3600
     

    R3-1.3655
     

    Support               
     

    S1-1.3490
     

    S2- 1.3445
     

    S3-1.3360

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