Shockingly poor manufacturing data gave sterling a knock yesterday. October output was down 1.0% versus expectations of a 0.2% gain. Cable found support precisely at our 17315 level, and GBPEUR at the 1.4700 support. This leaves a technical “cloud” hanging over sterling from here, and we need to regain yesterday’s highs before we can safely expect further upside. At the moment, it looks like both pairs are consolidating after the news and could go lower.
There is very little in the way of data today.
GBP EUR – Support 1.4700/05 then 1.4650
Resistance 1.4778 then 1.4808
GBP USD – Support 1.7315 then 1.7247
Resistance 1.7430 then 1.7453
Other pairs of interest at the moment have been GBPJPY, which is trading at high levels, with Yen weakness the predominant theme, and recent Sterling strength adding to the move. This looks like a good time to be buying JPY.
GBPZAR (second chart) is also worth a look, with the Rand trading close to muti-year higher versus Sterling. Good for anyone looking to bring money back over from S.A.
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