The pound sterling fell against USD
& JPY after the weak manufacturing data. Total
production output decreased by 0.1% in January 2015 compared with December
2014. There were increases in two of the main sectors with mining &
quarrying output being the largest contributor increasing by 2.0%. The manufacturing
output contracted by 0.5% in January 2015 compared with December 2014. The cable fell below the previous swing at 1.4950, made a low at 1.4894. Today, traders eye
BoE Governor Carney’s speech. Ahead of a batch of the key economic data, the cable is
trading higher against USD & JPY. The UK is slowly approaching its general
election scheduled in May. Market participants expect the pound to get under
downward pressure. The monthly support is seen at 1.4810. In case, the price
closes below 1.4950, we can expect 1.4800 in the medium term and 1.4350 in the
longer term. The cross EUR/GBP is also weighing on the pound. The eurozone is
the major trading partner of the UK. At yesterday’s session, we recommend fresh
intraday selling below 1.5020 with targets at 1.4990 and 1.4960. The cable
made a low at 1.4894. Until the prices close below 1.4950, the bearish view remains in play for 1.4720
and 1.4560 initially. Until the prices close below 1.5130, the intra-month
bearish view remains on play.
Resistance: 1.4950, 1.4990, 1.5030.
Support: 1.4894, 1.4850, 1.4800.
Trade: we recommend waiting for a rise to sell with sl
The material has been provided by InstaForex Company – www.instaforex.com