By Fast Brokers – The Cable is shrugging back towards weekly lows as Wednesday’s pop fades. UK retail sales data wasn’t able to excite investors as it printed in line with analyst estimates at .3%. Focus now shifts to weekly U.S. unemployment claims followed by the Philly index. However, attention will likely remain on the EU as governmental leaders try to show a more unified front in countering fiscal uncertainties. If EU governments are unable to act in concert and present clear details for its $1 trillion rescue package soon then any new investor confidence could deteriorate quickly. Since the BoE mentioned their concern of a spillover from the EU to the UK, more emphasis is being placed on events in the EU now. Though the potential impact has been clear to most investors, a vocal BoE usually drives the point home. That being said, despite yesterday’s pop markets are far from stable and investors should keep a keen eye on the news wire for any new developments. Tomorrow’s data wire will get more interesting with the UK releasing public sector net borrowing. If public sector borrowing balloons again this could place new downward pressure on the Cable with investors speculating that parliament’s emergency budget cuts may prove futile.
Technically speaking, the Cable faces mounting downtrend lines along with 5/19 and 5/18 highs. Additionally, the psychological 1.45 area could serve as a solid barrier should it be tested. As for the downside, the Cable has support in the form of intraday lows and the psychological 1.42 level.
Present Price: 1.4310
Resistances: 1.4340, 1.4366, 1.4398, 1.4416, 1.4431, 1.4451, 1.4474
Supports: 1.4305, 1.4274, 1.4248, 1.4236
Psychological: 1.42, 1.45, May 2010 and April 2009 lows
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