Products You May Like
Cable pushed to lows of 1.2864 on the day
Sellers are now in near-term control as price has moved below the 200-hour MA (blue line) following the poor data release earlier here. At the same time, price has also broken below the trendline support highlighted earlier on the 4-hourly chart as well:
Bearish momentum is starting to be formed now and this doesn’t bode well for the pound in the near-term. With Brexit rhetoric not looking likely to improve, the outlook is growing darker by the day. In terms of data releases, there’s construction PMI to come tomorrow (minor in terms of context, but will weigh on sentiment just like today’s release) and then there’s the services PMI reading on Wednesday.
If economic data isn’t able to provide the necessary relief – even if it will just be temporary – then expect the pound to remain soggy in the near-term as technicals start shaping up for further downside in cable.
This article was originally published by Forexlive.com. Read the original article here.