A stronger than expected read in UK CPI at 2.3% against a 2.1% consensus from 3.2% previously saw Cable pop up. From pricing in a rate cut in June market has had to consider the possibility of none action leading to the move up that eventually faltered. News across the pond suggests the Fed will continue to hold rates steady as the minutes suggests growing concern over persistent inflation.
Resistance
- 1.28034 – March 21 High
- 1.27612 – Swing High
- 1.27275 – Intraday Consolidation Resistance
Support
- 1.26863 – Intraday Consolidation Floor
- 1.26433 – Intraday Range Play Low
- 1.25848 – Daily Moving Averages
With a long wick from the daily charts our bias for Cable is to look for prices to pullback in the near term. Bias for us will be to adopt a sell on rallies approach with long hourly wicks coming from 1.27275 as an excuse to jump short on a bearish engulfing accompanied by new lows. Note too a developing bearish divergence in 4H charts to reinforce our bias for the downside. We would be way of a bullish breakout if not accompanied by a fundamental justification.
