Cable slipping back after good start to the day

Cable is slipping back after a good start to the day. Having stood around 1.4285 in early Europe, we hit a 1.4430 high, but are now trading down at 1.4385. A number of factors have been helping underpin cable today and here are some of them.

In no particular order; much stronger than expected manufacturing PMI for March; a very successful gilts auction; talk of sterling demand related to HSBC rights issue; and a bout of aggressive EUR/GBP selling by a Dutch Bank. Now there are likely to be a few more factors, but they’ll do to be getting on with.

Technical support lies at 1.4340, resistance at 1.4440/45. Sources report sell orders lying at 1.4450.

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