Cable traders are preparing for a busy session today once the London session kicks off after what has been a relatively benign start to the trading week. Holidays across the globe restricted currency volatility yesterday, but there are three major data drops out of the UK this week, and FX traders are expecting to see moves in the pound. Expectations in the market are for a 20,000 increase in the Claimant Count, for Average Hourly Earnings to dip to 3.8% year-on-year, and for the Unemployment Rate to remain steady at 4.1%. The data this week could go a long way in indicating whether the MPC will produce a further rate cut on November 7, so expect the impact to be considerable.
Cable is currently sitting on recent support levels ahead of today’s data, and a print off expectation should see it move into fresh ranges. Anything showing a falling job market should see the short-term support on the hourly chart break and open the way for a move down to longer-term support near 1.2900, whereas a stronger result should see the pair move higher into recent territory.
Resistance:
- Resistance 1: 1.3091 – 200-Day Moving Average
- Resistance 2: 1.3350 – Trendline Resistance
Support:
- Support 1: 1.3015 – Trendline Support and October Low
- Support 2: 1.2888 – Trendline Support
