Source: PaxForex Premium Analytics Portal, Technical Insight
Yesterday’s inflation data from the UK has lifted sterling but put UK-focussed stocks on the back foot. While headline inflation numbers may look better, the resilience of core CPI means the BoE may have to work harder to fight inflation, risking a bigger downturn in the UK economy.
Pivot: 1.7217
Analysis:
While the price is above 1.7000, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.7217
- Take Profit 1: 1.7300
- Take Profit 2: 1.7400
Alternative scenario:
If level 1.7000 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.7000
- Take profit 1: 1.6900
- Take Profit 2: 1.6800
Comment:
RSI shows the possibility of an uptrend in the medium term.
Key levels:
| Resistance | Support |
| 1.7500 | 1.7000 |
| 1.7400 | 1.6900 |
| 1.7300 | 1.6800 |
