By Fast Brokers – The Cable is looking to piece together some upward momentum from last week’s lows as Asia markets start Monday on a positive note. We see gains across the board in the risk trade with investors biting on oversold conditions. Europe will be on a banking holiday today and this gives markets another opportunity to stabilize as the break soothes uncertainty from last week. The only meaningful figure on the data wire today will be U.S. existing home sales. UK public sector borrowing came in about in line with analyst expectations while prelim mortgage approvals decline. On a positive note, prelim UK business investment surged by 6%, meaning economic activity could be picking up a bit. Attention will now shift to tomorrow’s UK revised GDP release, though it’s likely any revision would be limited in scope. The data wire will be relatively quiet across the globe this week, meaning psychological forces should remain in control of market activity. Cable investors are waiting on parliament’s emergency budget coming on 6/22. Meanwhile, attention will likely remain focused on developments in the EU.
Technically speaking, the Cable faces multiple downtrend lines along with 5/18 and 5/14 highs. Additionally, the psychological 1.45 area could serve as a solid barrier over the near-term. As for the downside, the Cable has support in the form of intraday and 5/20 lows
Present Price: 1.4495
Resistances: 1.4495, 1.4521, 1.4543, 1.4584, 1.4623, 1.4673
Supports: 1.4476, 1.4431, 1.4409, 1.4387, 1.4362, 1.4326, 1.4305
Psychological: 1.42, 1.45, May 2010 and April 2009 lows
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