GBP/USD broke below $1.3200 level against the US Dollar on Tuesday, after Bank of England Governor Mark Carney expressed less willingness to hike rates this November. UK CPI data released earlier, broadly met market expectations. Brexit negotiations and specifically EU’s strong stance on trade agreements also have a negative impact on cable.
The pair created a top around 1.3337 [Oct.13] which is just below the 50.0% retracement of September – October downtrend and also act as a psychological resistance in the near term. Cable is currently trading around 1.3187 and testing the support at 1.3180. If this support holds, price will retest the resistance zone at 1.3230/50. A break below this level [1.3180] will lead price to 1.3150. Intermediate support for the pair is at 1.3120/00.
Support: 1.3180, 1.3150 & 1.3120/00.
Resistance: 1.3230/50, 1.3290 & 1.3337.