Cable stands at the front foot in early Wednesday’s trading and probes again above key barriers at 1.3162/63 (falling 100SMA / Fibo 61.8% of 1.3472/1.2661 descend, where the action in past two days faced strong headwinds.
Bullish techs support positive sentiment on hopes of reaching Brexit deal in coming months.
Two-day EU summit starts today and is on the list of top events for sterling, along with speech of BoE’s MPC member Haldane and release UK CPI data.
Annualized figure is expected to tick lower in Aug (2.4% f/c vs 2.5% prev) while monthly CPI is forecasted to rise 0.5% in Aug after staying unchanged previous month.
Upside surprise would provide fresh boost to sterling for eventual break through 1.3162/63 pivots and extension of recovery leg from 1.2661 (15 Aug low).
Top of falling and thickening daily cloud marks solid support at 1.3066, which should contain stronger dips and maintain bullish bias.
Res: 1.3176, 1.3213, 1.3280, 1.3335
Sup: 1.3136, 1.3118, 1.3066, 1.3008
