The British Pound could not benefit much from yesterday’s better than expected data for Average Earning and Claimant Count Change as Unemployment Rate rose unexpectedly, keeping the downside pressure on the Cable. Politically, rebel members of the Parliaments have lined up with ex-Chancellor Philip Hammond to convey that Boris Johnson is the reason why the EU is not offering any deals to the UK. Some among them, such as John Bercow, took a step forward by pledging to do anything to stop Britain crashing out of the EU without any deal. Today, the Sterling traders are waiting for the CPI data to either resume the overall bearish trend or counter it with a short-term recovery.
The Sterling retested the 1.21 resistance for the second consecutive day but the bulls lack the required momentum to break through. As long as price is trading below the 50-day moving average, the bias will remain with the bears targeting possibly the all-time-low 1.19. If, however, the bulls manage to get past the 50-day moving average, then 1.22 will be on the cards for a retest.
Support: 1.20 / 1.19
Resistance: 1.21 / 1.22