Cable extended higher after better than expected UK PMI data (Dec Composite 49.3 vs 48.6 f/c, Services 50 vs 49.1 f/c) adding to positive signals after last Thu/Fri dip was contained by important Fibo support (61.8% of 1.2904/1.3284) reinforced by converged 10/30DMA’s. Fresh advance probed above pivotal barrier at 1.3142 (Fibo 38.2% of 1.3284/1.3053/4-hr cloud top) but needs sustained break higher to generate initial reversal signal. Conflicting daily techs (MA’s in bullish setup, south-heading stochastic, rising bearish momentum and neutral RSI) provide little help, but sentiment was boosted optimism among dominant UK services sector companies. Recovery needs close above 1.3142 as initial bullish signal, while extension above 1.3196 (Fibo 61.8%) would confirm reversal and shift near-term focus higher. Conversely, violation of key supports at 1.3053 (Friday’s low) and 1.3049 (Fibo 61.8% of 1.2904/1.3284) would weaken near-term structure and risk further easing.
Res: 1.3160, 1.3196, 1.3229, 1.3265
Sup: 1.3094, 1.3064, 1.3049, 1.3000
