Cable stands at the back foot in early American trading on Wednesday and holding near session low at 1.3099. Weaker than expected UK inflation numbers in Sep brought pound under pressure in Europe, with fresh weakness of Euro pulling sterling lower and adding to negative near-term sentiment. Probe below 1.3100 handle pressures 1.3093 (converged 100/30SMA’s) and exposes pivotal support at 1.3083 (Monday’s low) violation of which would further weaken near-term structure. Brexit talks remain the key event for sterling, with two-day EU summit, which started today, expected to provide more clues whether talks stalled or two sides would break the deadlock. Release of FOMC minutes would also provide stronger direction signals.
Res: 1.3129; 1.3178; 1.3192; 1.3235
Sup: 1.3093; 1.3050; 1.3000; 1.2990
