Sterling has been trading mixed today, gaining ground versus the euro, although presently off its highs, while holding near net unchanged against the dollar bloc currencies, and losing ground to the dollar, although presently off its lows. Cable’s low is 1.3204, subsequently lifting above 1.3280 but still down by 0.2% on the day. The 14-day RSI and other momentum indicators are flashing “oversold,” meaning that the duration and pace of the recent downtrend has become stretched by Cable’s price history norms, and therefore ripe for a correction (at least for those who don’t fully subscribe to efficient market hypothesis).
The intraday picture, looking slightly positive as the RSI raise above oversold territory and it is currently at 44, while the MACD oscillator is trying to jump above its trigger line to create a bullish cross in the negative territory. Hence i is likely to see today a retest of the round 1.3300 and the PP level at 1.3315, if the pair manage to hold above S2.
The UK calendar this week brings the May Gfk consumer confidence report tomorrow, where a fractional improvement is expected to a -8 reading after -9 in the month prior, April lending data from the BoE (Thursday), and the May manufacturing PMI survey (Friday), which it is anticipated to dip to 53.5 in the headline reading from the 53.9 reading of April. A 25 bp BoE hike is expected in the repo rate in August, assuming political turmoil in the Eurozone doesn’t throw the European economy into a spin.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
This Market Review is presented by HotForex Broker. Click here to open a HotForex Real Account.