By Fast Brokers – The Cable is attempting to build up a base above January lows as the psychological 1.60 hangs just overhead. The UK released a better than expected Construction PMI data point, tagging along with yesterday’s impressive Manufacturing PMI release. Hence, UK data continues to outperform and this is likely helping stabilize the Cable. Meanwhile, chatter has quieted down concerning Greece’s debt issues and the Standard and Poor’s bleak assessment of the UK’s financial sector is passing by as well. The relative calm psychologically is easing downward pressure on the risk trade, a positive development for the Cable. However, the EU still hasn’t decided how to deal with Greece and psychological forces could very well spark up again in the near future. Therefore, investors should keep a wary eye on the news wires for the time being. Meanwhile, investors are awaiting U.S. Pending Home Sales due shortly. U.S. housing data usually has the ability to jolt the FX markets, particularly if the number deviates from analyst estimates. The UK will release more economic data tomorrow, including Halifax HPI and Services PMI. These releases precede ADP Non-Farm Employment Change and Services PMI data from the U.S. as well. Therefore, volatility could pick up in the Cable tomorrow. More optimistic UK data and an absence of negative psychological forces could help the Cable regain a bit of lost ground. On the other hand, the FX markets are still in a fragile condition and should be monitored warily.
Technically speaking, the Cable has our 1st and 2nd tier uptrend lines serving as technical cushions along with intraday and 2/1 lows. As for the topside, the Cable still faces multiple downtrend lines along with 2/1 and 1/29 highs. Furthermore, the psychological 1.60 area could serve as a technical barrier should it be tested.
Present Price: 1.5947
Resistances: 1.5961, 1.5975, 1.5992, 1.6005, 1.6015, 1.6024
Supports: 1.5937, 1.5921, 1.5900, 1.5876, 1.5863
Psychological: 1.60, December and October lows
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither 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.
