Chart Pattern formed- Bullish Flag
Cable recovered sharply in the European session after declining till 1.3926 and jumped almost 50 pips from low of 1.39527. The pair hits intraday high of 1.39964 and is currently trading around 1.39689.
The downside in GBP is limited as positive economic data and rising wage growth rate will increase the chance of rate hike by BOE much faster than expected. Markets awaits Fed chair Gerome Powell’s first testimony in congress.
Technically on the lower side, near term support is around 1.39200 and any break below will drag the pair down till 1.38600/1.3800/1.37600 (Feb 9th -2.89% low). Short term bullish invalidation below 1.3800 (Feb 14th low).
The near term resistance is around 1.4050 and break above will take the pair till1.4145. The pair should break above 1.4145 for further upside.
It is good to buy on dips around 1.3955-60 with SL around 1.3900 for the TP of 1.407/1.4140.
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