FxWirePro: GBPUSD Trade Idea

GBPUSD has declined nearly 50 pips after release of UK retail sales. UK retail sales declines 0.9% in the month of Dec compared to forecast of -0.8% and core retail sales dropped by 1.3%. The pair shown a good jump of more than 100 pips after UK PM Theresa May won no confidence vote in narrow margin 325 votes to 306 votes. The voting on UK PM May Brexit plan B and amendments to the motion will take place on Jan 29th. According to YouGov poll shows that support for UK to remain in the EU has increased to 56% versus 44% leave. The pair hits intraday high of 1.29935 and is currently trading around 1.29454.

On the higher side, any break above 1.3000 confirms minor bullishness and a jump till 1.3070/1.31720 is likely.

The near term support is around 1.2920 and any violation below targets 1.2860/1.2700. Any bearish continuation only below 1.2660.

It is good to buy on dip around 1.2920 with SL around 1.2860 for the TP of 1.3170.

Resistance

R1- 1.3000

R2 - 1.3070

R3- 1.3175

Support               

S1- 1.2920

S2- 1.2860

S3- 1.2800