FxWirePro:GBP/USD Trade Idea

GBPUSD hits 6- week high of 1.31705 at the time of writing on account of Brexit optimism. US has imposed 10% tariff on $200 billion Chinese goods and China to retaliate against the tariffs imposed by US . China’s commerce ministry was clear that they will not sent be sending officials to US to proceed trade talks. The trade war is supporting US dollar prices.

Pound sterling was trading higher against all majors for past one week after EU officials said that Brexit deal will be reached within 5 to 7 weeks. Market has already priced in no deal Brexit and any positive twist happens in deal will take the GBPUSD till 1.3300.

On the higher side, near term resistance is around 1.3175 and any violation above targets 1.3235/1.3300. Any break above 1.3300 will take the pair to next level till 1.3365/1.3400.

The near term support is around 1.3107 (20- 4H MA) and any break below targets 1.3070/1.3030/1.3000. Any violation below 1.2965 confirms bearish continuation.

It is good to buy on dips around 1.3100 with SL around 1.3060 for the TP of 1.3200.

Resistance

R1- 1.3175
 

R2 - 1.3235
 

R3- 1.3300

Support               

S1- 1.3100

S2- 1.3065

S3- 1.3000