By Fast Brokers – The Cable has registered a large leg down after breaching its psychological 1.55 level. BBA Mortgage Approvals much weaker than expected, sparking speculation that the economic recovery is cooling. Additionally, markets received discouraging EU data today, including the weakest French Consumer Spending reading since October 2006. Hence, we’re viewing a route of the risk trade once again with fundamentals disappointing. Meanwhile, King reiterated the BoE’s flexible monetary stance. The central bank is taking the middle road by stating it is ready to be proactive should inflation either heat up faster than expected or dip to deflationary levels once again. Such a flexible stance implies upcoming UK data could yield more volatility, particularly pricing
Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday highs and the psychological 1.55 level. As for the downside, the Cable has multiple uptrend lines serving as technical cushions (off screen) along with intraday and 2/19 lows.
Present Price: 1.5441
Resistances: 1.5458, 1.5482, 1.5503, 1.5524, 1.5543
Supports: 1.5428, 1.5407, 1.5390, 1.5365, 1.5348
Psychological: February lows, 1.55, 1.53
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