The GBP/USD has slipped lower sharply, shedding more than 75pips after British manufacturing output suffered its sharpest decline since 2013 adding doubts about British economic recovery.
- Currently the cable is trading around 1.4422 levels, it is set to decline further towards 1.4350 later towards 1.4300 levels in the short term.
- To the upside, the strong resistance can be seen at 1.4492, a break above this level would expose to cable to next resistance level at 1.4544.
- To the downside immediate support can be seen at 1.4410, a break below will open the door towards next level at 1.4361.
Recommendation: Go short around 1.4440, targets 1.4350, 1.4300, SL 1.4490
Resistance Levels
R1: 1.4449 (50% Retracement Level)
R2: 1.4492 (61.8% Retracement Level)
R3: 1.4544 (Jan12th high)
Support Levels
S1: 1.4410 (38.2% Retracement Levels)
S2: 1.4361(23.6% Retracement Level)
S3: 1.4300 (Psychological levels)
