HomeContributorsTechnical AnalysisGBP/USD: Cable Weakens on Downbeat UK Earnings Data, Inflation Report in Focus

GBP/USD: Cable Weakens on Downbeat UK Earnings Data, Inflation Report in Focus

Cable pulls back in European trading on Tuesday, erasing a good part of Monday’s 0.65% jump, pressured by weaker than expected UK pay growth data, which increases pressure on those advocating for another BoE rate hike.

Markets await release of UK Sep inflation report on Wednesday (6.5%y/y f/c vs 6.7% Aug and core 6.0% f/c vs 6.2% Aug),

September figure in line or below expectations will weigh further on hawkish rate view and keep sterling at the back foot.

Fresh weakness pressures initial support at 1.2141 (bull-trendline off 1.2037 low) ahead of pivotal point at 1.2122 (Friday’s low), loss of which would signal further weakness and risk retest of Oct 4 low at 1.2037.

Converged 10/20DMA’s 1.2200/13) mark pivotal barrier, with sustained break here to sideline immediate downside threats and open way for fresh recovery.

Res: 1.2200; 1.2213; 1.2271; 1.2308.
Sup: 1.2141; 1.2122; 1.2100; 1.2037.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading