The cable has been facing strong resistance at 200dema rejected five consecutive days finally closed far below that at yesterday’s session.
Bank of England Governor Carney: membership in the European Union to strengthen the openness and dynamism of the British economy. Britain needs a more flexible fiscal policy. Compared to the single market, a single currency requires a deeper level of integration; need clear provisions to safeguard the interests of the EU-Africa euro zone members.
A higher degree of openness means that the UK will face more financial shocks. EU guidelines yet the Bank of England’s Monetary Policy Committee (MPC) to fulfill its mandate hindered. Eurozone needs a deeper fiscal and financial integration.
British Prime Minister Cameron: Britain hopes to become China’s “partner”, Asian investment bank to help promote employment, Asian investment bank bonds to help London to discuss the global excess steel supply issues with Chinese President Xi Jinping.
Citigroup: cut 2016 global economic growth forecast to 2.8% (previously expected growth of 2.9%), the European Central Bank, Bank of China, Bank of Japan and Reserve Bank of Australia is expected to further ease, the Fed and the Bank of England rate hike may be delayed. (For the fifth consecutive month down)
Economic events: Traders eye UK’s retail sales and US unemployment claims.
The UK’s retail sales month on month basis, bounce in August after June and July’s weak numbers. Economist expects 0.4% in September compared to August 0.2%.
On year or year basis, the sales have been disappointing Since June. Economist expects 4.8% in September compared to August 3.7%.
Technical view: At yesterday’s session, the cable manages to hold the 100dema finds at 1.5410 today the cable made a low at 1.5411 during Pacific session. The strong support finds at 1.5390, 50dsma. The trading pattern is framed between 1.5500 and 1.5390 either close aims at 1.5650 or 1.5360 and 1.5300.
The cable earlier rejected twice at 20wsma in September fell to 1.5100 levels. In case if the cable closes below 1.5360 again the price likely to drift towards 1.5160 and 1.5100. As of now the cable formed a double bottom in the monthly chart support finds between 1.5100 and 1.5088 May lows.
A weekly close above 1.5500 the bulls possible to extend the journey towards 1.5650 and 1.5700 levels.
The cable has been trading in a tight pattern between 1.5510 and 1.5400 for four days. The pattern seems like a distribution pattern in case sustain below 1.5380 the cable possible to fell towards 1.5330and 1.5300. The bull last hope remains at 1.5300 a daily close below 20dsma likely to extend the fall towards 1.5200 and 1.5160.
Trading support finds at 1.5400, 1.5370 and 1.5300
Resistance seems at 1.5440, 1.5480 and 1.5510