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The Cable is attempting to stabilize right now after dropping below its psychological 1.50 level in the midst of a hefty selloff resulting from weak economic data and cautionary words from Moody\u2019s and Fitch.\u00a0 Yesterday\u2019s RICS number printed well below analyst expectations, confirming last week\u2019s pullback in the Halifax HPI.\u00a0 Additionally, today\u2019s UK Trade Balance figure underwent a discouraging setback to the -8 billion mark, signaling that demand for UK exports is not improving despite broad-based weakness in the Pound.\u00a0 Hence, investors are speculating that the BoE will remain comparatively dovish.\u00a0 However, we\u2019d like to bring back to mind that last week\u2019s UK Services PMI number experienced a sizable pop, an encouraging development considering the nation\u2019s GDP is highly reliant on the services industry.\u00a0 As a result, negativity in the Pound could be a bit overdone.\u00a0 Today Fitch and Moody\u2019s issued statements implying that the UK needs to get its fiscal house in order or face the risk of a downgrade in the nation\u2019s credit rating.\u00a0 Disconcerting comments from the ratings agencies did place additional downward pressure on the Cable, though they aren\u2019t telling us anything investors don\u2019t already know.\u00a0 Keep in mind that the Cable\u2019s selloff in the beginning of March resulted from a poll showing a dead heat in the parliamentary election, raising fear that there will be a deadlock when deciding upon whether to tighten fiscal spending.\u00a0 Hence, the UK\u2019s worrying fiscal situation has been in the headlights for some time now.\u00a0 Although the data wire has been relatively quiet so far this week, it\u2019ll begin to heat up tomorrow with China releasing New Loans and Trade Balance data over the next couple trading sessions.\u00a0 Strong data from China could help out the risk trade, whereas negative data could favor the Dollar.\u00a0 The UK will also release Manufacturing Production data tomorrow, though today\u2019s Trade Balance figure sets the stage for a possible disappointment.<\/p>\n
Technically speaking, the Cable has our 1st and 2nd tier uptrend lines serving as technical cushions along with intraday and 3\/2 lows.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 3\/3 and 3\/8 highs.\u00a0 Meanwhile, the psychological 1.50 area could continue to play a role in the Cable\u2019s near-term movements.<\/p>\n
Present Price: 1.4952<\/p>\n
Resistances: 1.4960, 1.4975, 1.4987, 1.5007, 1.5024, 1.5036<\/p>\n
Supports: 1.4941, 1.4924, 1.4901, 1.4885, 1.4870, 1.4851<\/p>\n
Psychological: 1.50, March lows<\/p>\n
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