Cable ticks higher in early European trading after trading within tight range in Asia on Thursday and probes again above key barriers at 1.3159/62 (falling 100SMA / Fibo 61.8% of 1.3472/1.2661).
Strong indecision is signaled by double Doji on Tue / Wed, as conflicting fundamentals on Wednesday (upbeat UK CPI/negative news about Brexit) kept near-term action in directionless mode.
Mixed techs, with strengthening momentum and slow stochastic heading south after reversal from overbought territory, add to mixed outlook.
Brexit talks are expected to remain one of key drivers, with focus turning towards UK retail sales data today.
Retail sales are expected to fall in August (m/m -0.1% f/c vs 0.7% prev / core m/m -0.2% f/c vs 0.9% prev), with release at / below consensus to weigh on sterling, while better than expected releases expected to provide fresh tailwinds.
Cable needs clear break above100SMA / Fibo barrier to signal continuation of recovery phase from 1.2661 (15 Aug low), after Wednesday’s probe above 100SMA and spike to 1.3214 high was short-lived.
Res: 1.3214, 1.3280, 1.3301, 1.3362
Sup: 1.3159, 1.3137, 1.3096, 1.3081
