The cable has been continuing the downward ticks for the 3rd consecutive day. At yesterday's session, the CPI data disappointed bulls and encouraged greenback bulls. The Consumer Prices Index (CPI) fell by 0.1% in the year to April 2015, compared to no change (0.0%) in the year to March 2015. This is the first time the CPI has fallen over the year since official records began in 1996 and the first time since 1960 based on comparable historic estimates. Today, traders eye on the MPC.
Technical view: The cable rejected at 100Wema and fell by 370 pips. We have warned that a sharp reversal was expected between 1.5800 and 1.5835. The cable made high at 1.5815 changed the direction close below 200Dsma&ema. The weekly support is found at 1.5150 20Wsma. The nearest support is found at 1.5440 and 1.5400. The intraday resistance is seen at 1.5535 and 1.5560. The trade favors selling on rises. Today, small trading below 1.5440 is available for bears with targets at 1.5400, 1.5393, and 1.5385. We expect the cable to touch 1.5280 in a day or two. On a positional basis, the cable favors buying on dips with sl 1.5150. Small trading is available for intraday bulls above 1.5535 likely 1.5550, 1.5580, and 1.5600.
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