Be careful with GBPUSD support at 1.2700

FX:GBPUSD   British Pound / U.S. Dollar
It is worth to pay attention to the dynamics of the GBPUSD near support area at 1.2700. A fall below this point may be a signal of a serious prospects revaluation, which can cause a fairly rapid reduction of the pair to the post-Brexit lows, just a little above 1.2000.

As Brexit draft plan published, now markets are shifting their focus to the Macroeconomics, and that may increase the pressure on the pound on speculation that the Bank of England may abandon its plans to raise the rates in the coming months. During this week only we saw:

1) The claimant number had grown for the fifth consecutive month. The Unemployment rate increased unexpectedly.
2) Consumer inflation shows no signs of acceleration.
3) Retail sales fell for the second month in a row.
Based solely on technicals, the number 1.2700 is significant.
I can agree with you that it needs to hold that price level.
That being said, if we hold the most current lows, it can test upto the 1.3040 -1.3480
(it is a large range because there are many latent orders up that high)
+1 Reply
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