Annual Budget Release Favours Cable Towards 1.4000 Resistance.
The HM Treasury Annual Budget Release - a document outlining the government's budget for the year, including expected spending and income levels, borrowing levels, financial objectives, and planned investments was released just a few moments prior at this point of writing. Released annually, the report is known to cause a stir in the markets and is highly anticipated by traders to push Cable in particular through volatile swings to both the upside and downside. As of now, Cable has spent the majority of the day trading within the 1.389 boundaries, showing little nudge of directional bias from investors who no doubt have been accumulating positions in the run-up to the data's release.
The documents arrival was delayed by 60 minutes to fall in line with the opposing USD fundamentals the core CPI and CPI as a standalone. This, alongside the good expectations and stated facts of budget execution being ahead of schedule, was enough to shift Cable higher out of its tight-range this afternoon and begin launching price towards 1.3950 and of course, the lingering major resistance barrier of 1.4000 which suddenly is no longer a far-reach to becoming achievable. The document also failed to produce any real policy designs and focused predominantly more on a summary of the progress rather than future prospectives to aid the end-term goal, leaving a major gap for investors to fill as they decide where the price of Sterling could be heading next.