The British pound stayed afloat above 1.2300 round-figure support and bounced towards Wednesday’s recovery high at 1.2385, showing minimal negative reaction on significantly weaker UK PMI data for April (Manufacturing 32.9 vs 42 f/c, Services 12.3 vs 29.0 f/c and Composite 12.9 vs 31.4 f/c).
Attempts to extend recovery after pullback from 1.2647 high stalled at 1.2247 on Tuesday, now probe through thin falling daily cloud, which will start to thicken from tomorrow.
Fresh bulls need to regain 1.2400 handle (Fibo 38.2% of 1.2647/1.2247 / 20DMA / base of thick 4-hr cloud), with break here to generate bullish signal for further recovery.
The action is supported by fresh bullish momentum and stochastic reversing from oversold territory on daily chart.
Caution on failure to clear 1.2400 barrier that would signal extended consolidation but will keep the downside at risk.
Res: 1.2385, 1.2400, 1.2445, 1.2494
Sup: 1.2308, 1.2274, 1.2247, 1.2205
