May 28, 2018
Last week pair has made a new low of 1.3293 for year 2018 by the second estimate of UK GDP for the 1st quarter of the year,which was unchanged at 0.1%, further denting chances of a rate hike in the second half of the year. The pair is heading south due to stronger USD and weak GBP , well USD is likely to remain stronger for next 2-3 months as US interest rate are hiked between 2-3 times.
Well on the daily chart we can see that bears are dominating the bulls and pair is falling down and making lower lows on day to day basis. The way bears are reacting it seems that further sell off is still due and traders & investors are advised to short the pair. Overall pair is trading below all the major and minor EMA lines which is generating bearish signals. A downtrend line is still existing on the daily chart which is generating bearish sentiments.
Intraday to weekly bias remains bearish as long as 1.3500 level remains unbreached. The 1.3200 level is the key support level followed by 1.3100 level where as 1.3500 level is the key resistance level followed by 1.3600. RSI and MACD indicators both are generating bearish signal from the oversold territory so we may see some correction but this correction should be taken as selling opportunity.