Sterling struggled yesterday as the Bank of England Governor Carney seemed to open the door to rate cuts. However, we see this as something of a miss-read by the market and could throw up the next opportunity. There is a strong support band $1.2900/$1.3010 and we still see weakness towards here on a medium term basis as a chance to buy. The 23.6% Fibonacci retracement (of $1.2193/$1.3515) at $1.3010 coinciding with the key October breakout as the first line of support. It was interesting to see Cable bounce off this level yesterday and the bulls are seemingly still happy to support weakness. There has been a mild negative shift on momentum, but given the slip back over the past week or so, this is still well contained within the positive medium term momentum configuration on RSI and MACD. On a near term basis, the bulls need to break the sequence of lower highs, so $1.3130 is initial resistance under $1.3170 and the more considerable $1.3200.
Risk Warning for Financial Promotions
Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.
Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.
The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.
© 2014 Hantec Markets Limited