The political situation in the UK surrounding Brexit quickly subsided. Yesterday, the Parliament even managed to vote against the vote of no confidence in the May government, which removed the risk of reassigning the entire Cabinet of the government and, as the most, new re-elections. Now Theresa May is working to agree on a draft agreement with the Parliament. The EU is ready to make concessions so far “in some matters”. On the news, the pound has grown by 20 points.
And while the British authorities are thinking about the new rules of the game, investors can concentrate on economic indicators. The consumer price index in the UK last month decreased from 2.3% y/y to 2.1% y/y, core CPI grew 1.8% yoy to 1.9% yoy, retail prices fell from 3.2% y/y to 2.7% y/y on Friday retail sales for December expected decrease of -0.8%.
Technical support for the price yesterday was provided by the Krusenstern line of daily scale. Accordingly, in case of fixing the price below it, probably a further decline. A wider support is the range of Krusenstern lines of two scales – day and four-hour 1.2814/37. Leaving the price under it will allow the price to fall to the line of the price channel of the daily scale of 1.2669, coinciding with the low of January 15. A lower price may mean that the market is aiming for a lower support of the price channel in the area of 1.2455.
The material has been provided by InstaForex Company – www.instaforex.com