Daily Insight

The British Retail Consortium reported a 2.6% rise in UK retail sales over Christmas, well above the 1.5% expected. This should be positive for sterling. The survey had shown seven straight months of falls leading into November, which produced a 0.8% gain as shoppers geared up for Christmas.

French Manufacturing Output was up by 2.6%, pretty much in line with expectations, so no reaction seen from the Euro. Slight Euro weakness continues versus dollar and sterling.

Cable bounced off our first support at 17620 this morning, the underlying momentum remains positive, and price action since Friday's high looks corrective, so a good possibility of further upside here.

GBPEUR - Support 1.4550 then 1.4500
Resistance 1.4615 then 1.4650

GBPUSD - Support 1.7620 then 1.7480
Resistance 1.7730 then 1.7809