With no major data releases today, Cable is expected to react to non-economic news, notably any developments coming from Theresa May’s visit to Northern Ireland to meet political parties. The meetings will provide them with the opportunity to discuss the Ireland backstop, the political impasse which still plagues any potential Brexit agreement. Yesterday, European Commission President Jean-Claude Junker allowed the possibility for adding to the existing agreement, something that the UK Prime Minister will seek to exploit.
Technically, Cable is trading between 1.2986 and 1.2935, the Fib. 23.6% and 38.2% levels respectively. The overall short-term trend, according to the MACD indicator, appears to be on the upside, with a similar reading coming from the Stochastics. The two levels appear to be quite important for the pair, especially on the Support side, given that it has been trading in this channel for hours, despite a small breakaway yesterday morning.
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Dr Nektarios Michail
Market Analyst
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