By Fast Brokers – The Cable managed to bounce a bit on Friday as the risk trade rallied with U.S. equities. However, the Dollar is coming off its highs across the board with today’s economic calendar very quiet. Meanwhile, EU and U.S. uncertainty is abating after the Fed clarified that a hike in the discount does not imply an increase in the fed funds rate while no news is good news in Greece. However, the Euro is still in a fragile state as investors monitor whether Greece can successfully implement its proposed austerity measures. Additionally, there is the possibly from another unexpected flare up in the other fiscally challenged PIIGS nations. Therefore, investors should continue to monitor the EU news wires since we’ve seen how debt issues can impact the whole FX market. The EUR/GBP is coming off its highs after the Pound sank in the wake of weak retail sales data. That being said, investors will likely be paying closer attention to UK data releases as the surface. Tomorrow the UK will release BBA Mortgage Approvals to go along with the Inflation Report Hearings. Investors will be looking for any further insight in regards to the BoE’s inflation outlook. However, it wouldn’t be surprising if the BoE sticks to its conclusion that last month’s pop in inflation was an abnormal occurrence. The U.S. will also release CB Consumer Confidence and S&P HPI data. Hence, activity could heat up again as tomorrow’s trading session progresses.
Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday highs and the highly psychological 1.55 level should it be reached. As for the downside, the Cable has multiple uptrend lines serving as technical cushions (off screen) along with intraday and Friday lows.
Present Price: 1.5477
Resistances: 1.5486, 1.5503, 1.5524, 1.5543, 1.5582
Supports: 1.5458, 1.5430, 1.5407, 1.5379, 1.5355
Psychological: February lows, 1.55, 1.53
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