Sterling traders are preparing for more volatility early in the London trading session today when the latest Retail Sales numbers are released. Cable came off recent multi-month highs in trading yesterday, dropping 0.8$% as the dollar moved higher against most of the majors. The latest data is expected to show a 0.6% decrease in the Retail Sales number after last month’s surprise spike to 2.9% and a print on expectation or lower could see yesterday’s move extended further.
Cable is sitting just above the 200-day moving average which comes in at 1.2920 at the moment and a weaker number should see it break through this level and push further south whilst another topside surprise could see the pair take off again and push back through the 1.3000 level again to challenge recent highs around 1.3044.
Resistance 2 : 1.3150 – 2023 High
Resistance 1 : 1.3044 – Monthly High and Trendline Resistance
Support 1 : 1.2920 – 200-Day Moving Average
Support 2 : 1.2695 – Trendline Support
