With the trade war quietening down especially after US and Mexico manage to avert another 5% increase in tariffs , we see some improvements in risk sentiment.
XI’s comments over the weekend that Trump remains a friend gives some hope that further worsening of the trade war may not happen.
However the trade war is far from over but there is some temporary relief.
Recommendation : range 1320/1335 with downside bias
Resistance : 1330/ 1338 / 1340
Support : 1320 / 1315/1310
Buy gbusd with a stop 1.2660 and a target of 1.2760 or 1.2810
With usd weak as expectations of a US cut increase we expect some recovery in the Gbpusd despite Brexit.
Seeing potential for a bounce higher with oversold conditions supported by 100 period MA and oversold stochastics.
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