Cable higher after UK PMI data; BOE super Thursday in focus
Cable jumped after better than expected UK Service PMI (53.8 in July vs 53.6 f/c and 53.4 in June) and broke above yesterday’s fresh high at 1.3250.
Bulls are looking for extension towards 1.3300 (round-figure resistance) and 1.3330 (Fibo 161.8% projection of bull-leg from 1.2588.
BoE’s super Thursday is in focus, with the central bank expected to keep unchanged but focus is on votes for rate hike. Expectations are for 6-2 vote which would signal interest rates may stay on hold for some, while surprise 5-3 vote (seen in June) would turn BoE’s outlook more hawkish and further boost sterling.
Key barrier at 1.3473 (weekly cloud top) could be tested on stronger acceleration higher.
On the downside, higher base at 1.3190 marks initial support, followed by rising Tenkan-sen / former high at 1.3125) violation of which would generate negative signal.
Res: 1.3268; 1.3300; 1.3330; 1.3346
Sup: 1.3210; 1.3190; 1.3125; 1.3100