Cable trades lower on static wage growth,good to sell on rallies
Cable has shown huge jump after breaking major resistance 1.32680 yesterday and hits fresh year high at 1.33250. The pair has pared some of its gain after weaker than expected UK jobs data.
UK wage growth in Jul y-y in 3 months came at 2.1% well below estimate of 2.3%. This shows that wage growth is far below inflation which came at 2.9%. So rising employment and declining wage growth confirms that there is no chance of rate hike by BOE this year.
On the higher side, near term resistance is around 1.3365 (trend line joining 1.30476 and 1.32449) and nay break above will take the pair to next level till 1.3400/1.3445.
The near term support is around 1.32500 and any break below will drag the pair down till 1.3200/1.3160 (Sep 11th low)/1.3095/1.3075.
It is good to sell on rallies around 1.3275-1.3280 with SL around 1.3330 for the TP of 1.3165.
UK wage growth in Jul y-y in 3 months came at 2.1% well below estimate of 2.3%. This shows that wage growth is far below inflation which came at 2.9%. So rising employment and declining wage growth confirms that there is no chance of rate hike by BOE this year.
On the higher side, near term resistance is around 1.3365 (trend line joining 1.30476 and 1.32449) and nay break above will take the pair to next level till 1.3400/1.3445.
The near term support is around 1.32500 and any break below will drag the pair down till 1.3200/1.3160 (Sep 11th low)/1.3095/1.3075.
It is good to sell on rallies around 1.3275-1.3280 with SL around 1.3330 for the TP of 1.3165.
