UK inflation data of January which came out today have shown housing prices rising by a slower pace than expected, as DCLG House Price Index rose by only 6.7% yearly and the consensus was referring to rising by 7.9% after increasing in December by 7.7%.
The input prices and the output prices came to show lower than expected monthly decreasing over the producing level, while UK CPI come as expected showing yearly rising by 0.3% which is the highest pace of rising since Jan 2015 but the core figure excluding food and energy surged by only 1.2% and the market was waiting for rising by 1.3% after increasing by 1.4% in December.
The cable rose to 1.4514 but it retreated again to be traded near 1.4450, after these data.
The cable is still standing below its daily SMA50, after facing resistance at 1.4666 halted its rebound from 1.4078.
After dipping down to 1.4349 on Feb. 8, The cable returned to be traded below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4630 in its seventh day in a row of being above the trading rate.
The cable daily RSI-14 is now in the neutral territory reading 48.094 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral area reading 44.480 with its signal line which is reading now 50.722 to show balanced situation meanwhile.
Important levels: Daily SMA50 @ 1.4614, Daily SMA100 @ 1.4928 and Daily SMA200 @ 1.5223
S&R:
S1: 1.4324
S2: 1.4147
S3: 1.4078
R1: 1.4666
R2: 1.4723
R3: 1.4845
Have a good day
Kind Regards
Global Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143
E-Mail: mail@fx-recommends.com
