Sterling dip on Brexit headlines, another chance to buy on dips
Yesterday, GBP decreased against the USD by 0.7 percent. Thursday witnessed another cascade of Brexit headlines develop, consequently bullying GBP/USD to lower levels on Thursday and erasing Wednesday’s gains.
The 1.31/1.3064 resistance zone on the H4 timeframe once again served sellers well, composed of the 1.31 handle, resistance from 1.3064 and August’s opening value at 1.3078. The key figure 1.30 surrendered ground, as did October’s opening value at 1.2925, to challenge 1.29 (located above Quasimodo support at 1.2865). Beyond here, 1.28 offers a reasonable target. Aiding the H4 resistance zone is a daily resistance level coming in at 1.3017, with downside on the daily timeframe pointing to trend line support, extended from the low 1.2075. Meanwhile, on the weekly timeframe, last week observed GBP/USD extend recent recovery gains from support at 1.2739 (a 2019 yearly opening value). Technicians will acknowledge 1.2739 blends with trend line resistance-turned support, extended from the high 1.5930. In terms of resistance, price has room to advance as far north as the 2020 yearly opening value at 1.3250.
Suggestion: BUY GBPUSD AT CMP 1.2890 SL BELOW 1.2800 TGT 1.2990/1.30
ELSE
SELL BELOW 1.2800 SL ABV 1.2890 TGT 1.1.2720
The 1.31/1.3064 resistance zone on the H4 timeframe once again served sellers well, composed of the 1.31 handle, resistance from 1.3064 and August’s opening value at 1.3078. The key figure 1.30 surrendered ground, as did October’s opening value at 1.2925, to challenge 1.29 (located above Quasimodo support at 1.2865). Beyond here, 1.28 offers a reasonable target. Aiding the H4 resistance zone is a daily resistance level coming in at 1.3017, with downside on the daily timeframe pointing to trend line support, extended from the low 1.2075. Meanwhile, on the weekly timeframe, last week observed GBP/USD extend recent recovery gains from support at 1.2739 (a 2019 yearly opening value). Technicians will acknowledge 1.2739 blends with trend line resistance-turned support, extended from the high 1.5930. In terms of resistance, price has room to advance as far north as the 2020 yearly opening value at 1.3250.
Suggestion: BUY GBPUSD AT CMP 1.2890 SL BELOW 1.2800 TGT 1.2990/1.30
ELSE
SELL BELOW 1.2800 SL ABV 1.2890 TGT 1.1.2720