FxWirePro: GBP/USD resumes downside after Brexit is triggered
Wednesday, March 29, 2017 2:29 PM UTC
- The Sterling remained in strong bearish tone against dollar on Wednesday as sterling was weighted down after Britain formally triggered its exit process from the European Union.
- Prime Minister Theresa May filed formal Brexit divorce papers on Wednesday, triggering years of negotiations that will test the cohesion of the European Union.
- Prime Minister Theresa May's 6-page Brexit letter to European Council President Donald Tusk set a positive tone for the talks, though it admitted that the task of extracting the UK from the EU was momentous and that reaching a comprehensive agreement within two years would be a challenge.
- Currently, the currency pair is trading at 1.2424 levels, it is set to decline further towards 1.2350 and later 1.2300 levels in the short term.
- To the upside, the strong resistance can be seen at 1.2523, a break above this level would expose to cable to next resistance level at 1.2615.
- To the downside immediate support can be seen at 1.2368, a break below will open the door towards next level at 1.2269.
Resistance Levels
R1: 1.2447 (50% Retracement Level)
R2: 1.2523 (61.8% Retracement Level)
R3: 1.2615 (March 27th highs)
Support Levels
S1: 1.2368 (38.2% Retracement Levels)
S2: 1.2269 (23.6% Retracement Levels)
S3: 1.2200 (Psychological levels)