By Fast Brokers – The Cable is trading lower again today despite yesterday’s comeback from intrasession lows. The Cable experienced a large leg down after Services PMI printed below analyst expectations. A slowdown in services is disconcerting for the UK since the nation’s GDP is heavily services weighted. That being said, it will be interesting to see whether this pullback in services is reflected in upcoming UK employment data. Meanwhile, the Cable is recovering from today’s lows and has managed to stay above yesterday’s lows thus far. However, today’s Services PMI figure could drag on the Cable since the U.S. will be quiet on the data front today. The data and news wires will pick up steam tomorrow with Australia kicking the day off by releasing important employment data. The UK will follow with the Halifax HPI and Manufacturing Production. It will be interesting to see what impact volatility in the Pound has had on demand for manufactured goods. Highlighting the session will be BoE and ECB monetary policy decisions. With parliamentary elections set for next month it is difficult to foresee the BoE tightening monetary policy and effectively slowing the economic recovery. On the other hand, looser liquidity could be perceived as fiscally irresponsible. Therefore, it would not be surprising to see the BoE stand pat and keep its policy unchanged. That being said, any surprise action from the BoE could have a considerable impact on the Cable.
Technically speaking, the Cable is still trading comfortable above downtrends running through March 17 highs, or the 1.5380 area. Hence, the Cable’s uptrend is still alive and well despite today’s pullback. Additionally, the Cable has fresh uptrend lines serving as technical cushions along with intraday and 3/31 lows. On the other hand, the Cable has dropped below April 2nd lows, and it will be interesting to see if the currency pair can stage an intraday recovery.
Present Price: 1.5219
Resistances: 1.5229, 1.5244, 1.5259, 1.5267, 1.5280, 1.5293
Supports: 1.5210, 1.5198, 1.5188, 1.5177, 1.5167, 1.5151
Psychological: 1.53, 1.52, March highs and April Lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
