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- GBPUSD: Cable at Key Support Again
GBPUSD: Cable at Key Support Again
The Pound dropped sharply on Monday and got closer to the key support, but traders bought the dip on Tuesday (so far) and the GBPUSD pair rose 0.30 per cent during the London session and it was trading slightly below the 1.30 mark.
The major support for the cable is now at around 1.2930, where previous highs and lows converged. If this one is broken, the medium-term bearish trend could be renewed, targeting the 1.28 level in the initial reaction. The pair also broke below the short-term bullish trend line, which seems negative for the Sterling.
Bears could defend the resistance at 1.3080, where previous highs and lows are located, along with the 100-day moving average. Should the cable jump above, the next target could be near 1.3150.
However, as sentiment seems negative so far on Tuesday, cable might come under selling pressure later on in the day also.
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