MetaTrader 4
Vertex FX 10

Cable 10th September 2013

Technical Outlook

Sterling has been bid in FX space in an upward channel for the last 2 weeks, within a bigger upward trend since the end of June. 

1.5717 being the recent high was broken during the Asian session with the pair reaching 1.5732, the next level of resistance is likely to be 1.5751, which was the previous daily high on the 17th June. 

The RSI is relatively high (76.2) which could mean the pair is overbought in the short term, seeing some profit taking.

Macro Outlook

Chancellor George Osborne said in a speech on Monday that the UK economy is “turning a corner”.  Though critics (primarily the political opposition) have stated that the growth is minimal, it is unsurprising, as it is not in their interest to support the current government.

Other factors boosting Sterling to a 3 ½ month high, is the OECD increasing their growth forecast for the UK economy up from +0.8% to 1.5%.

The key data points for Sterling comes tomorrow, when the ILO Unemployment rate is released.

At a global level, the unrest and potential intervention in Syria would likely see the Dollar Bid. 

Please note that the above is for information only. Abshire-Smith is an execution only brokerage, and trading decisions should be based on personal research and understanding. If you are unsure please contact an independent financial advisor. 

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