Daily Insight

Sterling had a dip on yesterday's weak Trade Balance figures, which showed the UK deficit for November rising to new highs at £5.966Bn. We remained weak against the Euro, but recovered against an even weakner dollar so that cable finished the day flat, having bounced precisely from our support level at 1.7512. This leaves what's known as a "doji" candle on the daily chart, which generally has bullish connotations.

There is plenty of data to throw a spanner in the works today, starting with UK Industrial Production at 09:30, then the BOE and ECB announcements at 12:00 and 12:45 respectively, topped off by US Trade Balance and Jobless claims at 13:30. Expect a volatile session!

GBP EUR - Support 1.4520 then 1.4500
Resistance 1.4585 then 1.4600, 1.4647

GBP USD - Support 1.7618 then 1.7512
Resistance 1.7700, 1.7727 (last week's high) and 1.7740 (trend resistance)