A slightly positive GBP have opened of the London session against his principal peers, EUR and USD.
While Cable is moving up 0,10% at 1,4346, the EUR/GBP cross is losing 0,10% trading at 0,7874. Both positive performance for the Sterling which however are not convincing the investors who are still not buying the English currency.
The GBP/USD pair, after having touched the daily low at 1,4320, seems to recover despite all the pressures coming from Europe and the loss of the profit taking resulting from the persistent risk-off sentiment on the market, after the strong regain of the oil price overnight.
The market seems to weigh the positive US housing data, another factor that limits the upper movement of the cross.
Moreover Brexit fears, even mitigated during the last few days, continue to scare investors and, despite “Bremain” forecasts, the Sterling finds hard to unwind the Brexit risk-premium, until the voting won’t be made.
The EUR/GBP seems to be trapped in a downside channel, which suggest even more downside movements during next weeks.
An hypothetical downside move of the Sterling during today’s trading session, however, remains capped from the slightly lower expectations for the March Retail Sales: the YoY and MoM February result have been respectively 4,1% and -0,2% and forecasts for the March ones show a slight decrease to 3,8% and -0,3%.
Looking at the Cable’s chart it’s easy to find interesting levels on which take a position: 1,4375 the first significant resistance which could be tested, while 1,4300 remains the main support level (round number) below which the pair could go to 1,4250, nice level for a take profit.
Market remains of the idea that hardly the Cable will brake the 1,45 level, at least until the exit pools for the UE referendum will be done.
Regarding the EUR/GBP pair, a braking of the upper level of the channel would be mean a trend reversal, which could bring the cross to regain the 0,7890 level (daily high).