Cable is holding at the upper side of multi-day 1.2830/1.2986 congestion and remains biased higher after upbeat UK CPI data on Tuesday and mixed jobs numbers on Wednesday supported the pair.
Yesterday’s acceleration higher that retested recent highs at 1.2986 and ended day in long bullish candle is positive signal. Also, daily studies in full bullish setup are supportive for final attack at psychological 1.3000 barrier, below which cable showed strong hesitation during past two weeks.
On the other side, falling thick weekly cloud heavily weighs on market (cloud base lies at 1.3032) with repeated rejection under 1.3000 barrier to start generating negative signals.
However, deeper pullback below 10 and 20SMA’s at 1.2927/00 is needed to increase downside pressure and risk retest of lower pivots at 1.2843/30.
Release of UK Retail Sales data is expected to give more clues about pair’s near-term action. Forecasts are positive for Apr Retail Sales (m/m is forecasted at 1.0% vs -1.8% in Mar, while y/y forecast stands at 2.1% vs 1.7% in Mar).
Res: 1.2988; 1.3000; 1.3032; 1.3074
Sup: 1.2927; 1.2916; 1.2900; 1.2864