Trade view /
15 June 2016 at 11:56 GMT
Sterling has booked gains against the dollar on Wednesday. Fears that the UK may vote to exit the European Union eased slightly as the lead for the “Leave” campaign was reduced to 3% from 7% yesterday.
There was also comfort from the data that showed the UK unemployment rate fell, while pay growth rose in the three months to April. The Office for National Statistics said the UK unemployment rate fell from 5.1% to 5.0% in the three months to April.
This was the lowest level in more than a decade.
Average earnings excluding bonuses rose by 2.3% in the three months to April year-over-year, versus expectations for a 2.1% rise and up from 2.2% in the three months to March.
Earnings including bonuses rose by 2.0% on a y/y basis, unchanged from the previous three months. Economists had expected growth of 1.7%.
Source: www.investing.com Spotlight Ideas
This does look to be a short-term play as the time-based technicals all suggest a strong buy out to the one-hour mark. Afterwards, the longer measures starting with the five-hour signal are calling a strong sell.
Clearly any UK related product is going to require one to be a quick-minded active trader. Ahead of June 23, no position can be taken for anything other than a day trade or short-term.
(Note: I will be away from June 17 to June 26 … so I will not be trading or answering questions)
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Source: Spotlight Ideas
Entry: buy 1.4195 area.
Targets: 1.4211… 1.4233… 1.4262.
Time horizon: day trade
— Edited by Michael McKenna
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Non-independent investment research disclaimer applies. Read more