Rising unemployment and expectations that the surge seen in UK retail sales is as a result of consumers rushing to beat the hike in VAT to 20% come January are undermining the pound this morning.
The break below 1.5710 was a killer for cable earlier today and we’ve extended those losses to 1.5622 thus far after shearing support at 1.5660/70.
Next support is 1.5610. Look for sellers in the 1.5660/70 area now on rebounds.
The break of 8520 in EUR/GBP is significant. We’re back above the 200 day moving average and recent peaks at 0.8522.
