Cable holds firm tone in early US trading and pressures European high (1.2927), posted after acceleration on upbeat earnings data. The pair was up around 80 pips after data, with subsequent short-lived correction on profit-taking. Better than expected UK jobs data improved the sentiment, but story about Brexit remains key driver for sterling. Renewed pressure from the opposition for vote on new Brexit referendum maintain positive tone, with focus on 29 Jan parliament’s vote on next Brexit steps coming in focus. The pair holds firmly above daily cloud and looks for daily close above 100SMA (1.2892) which would generate bullish signal for further advance and renewed attempt at psychological 1.30 barrier (dented on 17 / 18 Jan attacks).
Res: 1.2827; 1.2953; 1.3000; 1.3088
Sup: 1.2909; 1.2892; 1.2863; 1.2830
