Cable slid to 17-day lows just shy of 1.9550 late in the London morning, despite the 11:00GMT disclosure that January's CBI retail sales balance came in double its forecast level at a 25-month high of +30, from +25 in December. Some stops are touted below 1.9550, with bids flagged at 1.9540.
Further demand is noted at 1.9520/25, with additional stops pegged under 1.9510 and 1.9500. The 1.9510 level is a 61.8% Fibo retracement point of the ascent from 1.9260 (Jan 8 low) to 1.9917 (last Tuesday's 15-year high). GBP/USD resistance levels include 1.9600 and 1.9617 (Asian session top). US hedge fund selling was seen pre-1.9600 during the European morning. EUR/GBP stops reportedly reside above 0.6610. 17-day highs just shy of 0.6610 have been notched since the CBI survey was published at 11:00GMT.
MPC ultra-dove David Blanchflower, who has voted against all three 25bp UK rate hikes through the current tightening cycle, predicts that UK CPI could start falling from February and be below its 2.0% target level by year-end. UK CPI is presently 3.0% (Guardian).
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