Cable bounces from new nearly two-week low at 1.2827, hit on Monday after the pair registered loss of 2.10% in past three sessions, on steep fall driven by increased Brexit concerns.
Today’s recovery attempts were triggered by profit-taking and announcement from EU’s chief Brexit negotiator who said that key points of divorce treaty are ready to present to the UK cabinet.
Fresh optimism drove the price higher but the action faced headwinds at 1.2900 zone and stays below, awaiting release of UK labor data for fresh signals.
Strengthening momentum on daily chart supports recovery and oversold slow stochastic also signaling corrective action.
Lift above 1.2946 (Monday’s high/falling 20SMA) is needed to generate fresh bullish signal for extension towards upper pivot at 1.2980 (daily cloud base), firm break of which would neutralize existing bearish bias and shift focus higher.
Forecasts for today’s UK jobs data are positive (Sep avg earnings f/c 3.0% vs 2.7% prev/Oct jobless claims 4.3% f/c vs 18.5K prev ), with releases above expectations to further boost recovery, however, focus will remain on Brexit talks which proved to be pounds key driver.
Res: 1.2946, 1.2980, 1.3000, 1.3025
Sup: 1.2878, 1.2838, 1.2827, 1.2808
