London Mayor Boris Johnson who is expected to succeed James Cameron by 2020 elections announced his decision during the weekend to go along with UK Justice Secretary Michael Gove for campaigning against Cameron's deal preferring Brexit.The conservative ruling party seems ahead of critical times, despite James Cameron's efforts which ended last Friday to a deal to have special British characteristic in EU freeing the union membership from most of the contents the other EU countries follow to keep UK in EU but that's looking not enough even for the ruling party itself!
So, what about the labor opposing party?
It looks that there can be political instability next in UK with more surprises ahead till the referendum date which will be waited to end this uncertainty.
God willing, The cable main figure this week is UK Q4 GDP which is expected to come as the same as the preliminary reading showing quarterly growth by 0.5%, after expansion by 0.4% in the third quarter of last year.
The cable opened the new week trading at 1.4276, after touching its hourly SMA200 by reaching 1.4407 by the end of last week supported by the agreement which opened the way to Cameron to date The Brexit referendum next Jun. 23.
The cable retreated further during the Asian session, after failing to restore a place above 1.43 again.
The cable which shrugged off Jan retail sales yearly rising by 5.2% is still well below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4551 in its eleventh day in a row of being above the trading rate.
The cable daily RSI-14 is now in the neutral territory reading 41.192 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 33.781 with its signal line which is closer to the oversold area below 20 reading now 28.986.
The cable has been already capped below its daily SMA50 by facing resistance at 1.4666 halted its rebound from 1.4078 to be followed by lower high at 1.4578, before last Friday peak at 1.4407.
Important levels: Daily SMA50 @ 1.4546, Daily SMA100 @ 1.4894 and Daily SMA200 @ 1.5194
S&R:
S1: 1.4233
S2: 1.4147
S3: 1.4078
R1: 1.4407
R2: 1.4576
R3: 1.4666
Have a good day
Kind Regards
Global Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143
E-Mail: mail@fx-recommends.com