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The cable came under pressure, after the release of Jan UK inflation data

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 16, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    GBPUSD H1 16-02-2016 01-15-38 م.jpg

    GBPUSD Daily 16-02-2016 01-16-15 م.jpg
    UK inflation data of January which came out today have shown housing prices rising by a slower pace than expected, as DCLG House Price Index rose by only 6.7% yearly and the consensus was referring to rising by 7.9% after increasing in December by 7.7%.

    The input prices and the output prices came to show lower than expected monthly decreasing over the producing level, while UK CPI come as expected showing yearly rising by 0.3% which is the highest pace of rising since Jan 2015 but the core figure excluding food and energy surged by only 1.2% and the market was waiting for rising by 1.3% after increasing by 1.4% in December.

    The cable rose to 1.4514 but it retreated again to be traded near 1.4450, after these data.

    The cable is still standing below its daily SMA50, after facing resistance at 1.4666 halted its rebound from 1.4078.

    After dipping down to 1.4349 on Feb. 8, The cable returned to be traded below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4630 in its seventh day in a row of being above the trading rate.

    The cable daily RSI-14 is now in the neutral territory reading 48.094 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral area reading 44.480 with its signal line which is reading now 50.722 to show balanced situation meanwhile.

    Important levels: Daily SMA50 @ 1.4614, Daily SMA100 @ 1.4928 and Daily SMA200 @ 1.5223


    S1: 1.4324
    S2: 1.4147
    S3: 1.4078
    R1: 1.4666
    R2: 1.4723
    R3: 1.4845

    Have a good day

    Kind Regards

    Global Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, Feb 16, 2016
    Last edited: Feb 16, 2016
    prav likes this.

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