Cable dipped to session low at 1.3214 at the beginning of European session on Friday, on comment from UK minister that there will be no Brexit deal unless the European Union softens its position on the Irish border.
Pound rallied nearly 1% on Thursday, driven by weakening dollar and positive sentiment, but faced headwinds at 1.3280 Fibo barrier (76.4% of 1.3472/1.2661 fall), with the latest news adding pressure.
Pullback from new 2 ½ month high at 1.3297 could extend as profit-taking and softer tone on the latest news, as well as reversal of daily slow stochastic from overbought territory, weigh on near-term action. Initial support at 1.3213 (former high of 26 July) has been cracked, with extended dips expected to find ground above broken 100SMA (1.3157), to keep bulls intact for renewed attempt above 1.3280 barrier and possible extension towards 1.3362 (09 July high).
Negative scenario sees break below 100SMA as initial bearish signal, with extension and weekly close below rising 10SMA (1.3121) needed to put bulls on hold.
Res: 1.3280′ 1.3297′ 1.3362′ 1.3400
Sup: 1.3214′ 1.3188′ 1.3157′ 1.3121
