The pound high stability may be the result not only the political situation in France, but also because of the UK inflation data where the October retail price index was expected with a growth from 0.8% y/y to 0.9% y/y. In fact the index came out at the level of 0.7%. The UK October consumer price index was expected at the same level of 1.0% y/y but showed a growth to 1.1%.
The price is consolidating. After the support successful of 1.5200 breakthrough bears sent the price lower to the mark of 1.5150. Then the pair increased above the resistance level of 1.5200.
The price is finding the first support at 1.5200, the next one is 1.5150. The price is finding the first resistance at 1.5300, the next one is at 1.5390.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is consolidating.
We believe the decrease will be continued now. The first target is the level 1.5200, the next one is 1.5150. We do not exclude the growth to 1.5300.