Cable has dropped back off of recent monthly highs in the last couple of sessions as the dollar increased after more hawkish FOMC Meeting Minutes and strong data prints out of the US. Traders will be looking closely at the Retail Sales data release on the London open today for more moves in the pair. Expectation is for the 0.5% decrease in the month-on-month number and anything significantly away from this should see some strong moves. Short term resistance will sit on the 200-day Moving Average with Wednesday’s high that came after a stronger than expected CPI print expected to provide sterner resistance. A weaker result would open the way for a test of the short term trendline support around 1.2570 and would probably have more legs given the dollar momentum at the moment.
Resistance 2 : 1.2761 – May High
Resistance 1 : 1.2711 – 200- Day Moving Average
Support 1 : 1.2570 – Short-term Trendline Support
Support 2 : 1.2443 – May Low
