Short GBP/USD hits 3- week low, good to sell on rallies : FxWirePro | October 27, 2017

Cable hits 3- week low and has broken major support 1.3100 handle on account strong US dollar 0.29% and increasing yield spread between US and UK. The pair dipped till 1.30700 and is currently trading around 1.30910.

Markets awaits US advance GDP Q/Q for further direction. Any positive surprise in the data will increase the chance of rate hike in the coming months.

The pair is trading well below trend line support at 1.3120 (trend lien joining 1.30270 and 1.30878) and this confirms minor weakness, a dip till 1.30270 likely. Any further weakness can be seen only below 1.30270 and break below will drag the pair till 1.3000/1.29689 (161.8% retracement of 1.31030 and 1.32794).

On the higher side, near term resistance is around 1.3170 and any break above will take the pair to next level till 1.3230/1.3300. Minor bullishness can be seen only above 1.3300.

It is good to sell on rallies around 1.3130 with SL around 1.3170 for the TP of 1.30280