By Fast Brokers – The Cable has recovered nicely from intraday lows and is presently climbing higher with the broad-based risk trade. The Cable has foregone a retest of Tuesday lows thus far while its psychological 1.50 area has proven resilient. The Cable has locked backed into its March trading range in the process with the UK budget coming tomorrow. Though investors aren’t expecting anything earth shattering tomorrow due to upcoming parliamentary elections, if Darling should manage to trim the UK budget this could boost the Cable since investors have become increasingly anxious concerning rising debt levels. Meanwhile, investors continue to focus on the EU as leaders jostle for position in regards to whether the union should offer Greece financial assistance. Greece could set an example for how the EU deals with other debt-laden European nations, so the debate has becomes heated as most investors know. What happens in the EU could influence the risk trade as a whole, so investors should keep a close eye on what comes out of this week’s EU meeting. Data wise, UK CPI printed a hair below analyst expectations, yet remains at elevated levels. Hence, the BoE will likely remain somewhat concerned about inflationary pressures in the UK, a positive for the Cable. BBA Mortgage Approvals improved while CBI Realized Sales disappointed. Therefore, today’s UK data paints a mixed picture. The U.S. and EU will print key data tomorrow along with the UK’s budget release. Hence, tomorrow could prove to be an active trading session.
Technically speaking, the Cable still has multiple uptrend lines serving as technical cushions along with intraday, 3/22, and 3/10 lows. Additionally, the psychological 1.50 could continue to serve as a solid technical cushion should it be retested. As for the topside, the Cable faces multiple downtrend lines along with 3/22 and 3/12 highs.
Present Price: 1.5074
Resistances: 1.5087, 1.5105, 1.5130, 1.5147, 1.5169, 1.5193
Supports: 1.5040, 1.5022, 1.5006, 1.4994, 1.4977, 1.4957
Psychological: 1.50, March lows
(click chart to enlarge)
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