There might be more down side for the GBP/USD currency pair from current levels if we see the Dollar (USD) strengthen from current levels.
We are also seeing the political uncertainty surrounding BREXIT continuing and placing strain on the British Pound (GBP) in the short term.
Technical outlook: The key breakdown level to look out for would be $ 1.3059, where a fall below this level might signal a continuation of the wider downtrend in play. The currency pair is also trading well below the 50-day simple moving average supporting the move lower.
Note: Keep an eye on the Dollar Index (DXY) as strength in the Dollar (USD) would support the move lower on the GBP/USD currency pair.
Trade: GBP/USD
- Entry (Sell): $ 1.3063
- Stop loss: $ 1.3151
- Target price: $ 1.2958
Source – Bloomberg
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