Cable maintains positive tone and ticked above 1.29 handle, following four consecutive rejections at 1.2819 Fibo support (23.6% of 1.2195/1.3012). Fresh advance after Tuesday’s long-legged Doji cracks initial barrier at 1.2890 (10DMA), shifting near-term focus higher after markets digested the latest news about parliament’s approval for 12 Dec UK snap election. PM Johnson continues to gamble in attempts to break Brexit deadlock, with election being his newest tool. Tories are likely to keep the majority but strong division among UK political parties warns that continuation of Brexit process will keep sterling highly volatile. Bullish signal is expected on today’s close above 10DMA that would keep in play fresh attempts towards key 1.30 resistance zone. Conversely, break and close below 1.2819 pivot would generate negative signal and risk dip towards key supports at 1.2712/00 200 DMA / Fibo 38.2% of 1.2195/1.3012). US private sector jobs report, GDP data and Fed rate decision, are top events today and expected to generate fresh direction signals.
Res: 1.2905, 1.2950, 1.3000, 1.3012
Sup: 1.2857, 1.2819, 1.2788, 1.2749
