Sterling falls back down due to a slowdown in U.K's average salaries. Surprisingly, average hourly earnings slowed down even though unemployment rate fell to its lowest level since 1975. The disappointment in salary growth coupled with the negative outlook in regards to the Brexit negotiations took a toll on the Pound. Additionally, the U.S dollar regained momentum yesterday which put further downward pressure on the Sterling. For today, investors will be focusing on the release of the CPI figures from the U.K and the Retail Sales figure from the U.S. Sentiment surrounding the Pound remains negative but an out performance from the CPI figures might bring life back to the British Pound.
The British Pound rejects the 13-period moving average and falls back down towards the 1.26890 support level. Since the beginning of the month, the Pound trended below the 13-period moving average indicating strong bearish momentum. A disappointment from the U.K CPI figure may allow for a break below the 1.26890 support level exposing the 1.26397 level.
Support: 1.26890 1.26397
Resistance: 1.27891 1.28386