Cable is consolidating under 1.3100 barrier on Friday, following sharp pullback from fresh high at 1.3158 on Thursday. One-hundred pips fall was contained above daily Tenkan-sen, now in sideways mode at 1.3045, which still acts as solid support.
Limited recovery warns that the pair may extend pullback for attack at psychological 1.3000 support (also low of 26 July) and 20SMA (1.2983) which both mark pivotal supports and break here would trigger stronger weakness. Thursday’s large bearish daily candle with long upper shadow weighs on near-term action, with increased downside risk seen while the price remains below 1.3100 barrier.
The pair is waiting for US GDP data for fresh signals. Strong than expected Q2 reading (according to 2.6% forecast vs Q1 1.4%) could send pound into fresh bearish acceleration below 1.3000/1.2983 pivots.
Res: 1.3100, 1.3125, 1.3157, 1.3200
Sup: 1.3060, 1.3045, 1.3000, 1.2983
