Pound broke below strong support at 1.2939 on fresh bearish acceleration after UK CPI miss. Inflation stayed unchanged at 2.6% in July, missing forecast at 2.7% and disappointed traders who expected stronger figure to support scenario of interest rate hike.
Sterling hit fresh one-month low at 1.2910 in extension below strong supports at 1.29340/40 zone, turning near-term risk towards next layers of supports between 1.2869/18 (span of daily cloud) among which 100SMA and Fibo 61.8% of 1.2588/1.3268 lay.
Broken 1.2939 level now turned to resistance, with former congestion top at 1.3031, reinforced by 30SMA, expected to limit stronger upticks.
Res: 1.2939, 1.2970, 1.3000, 1.3031
Sup: 1.2910, 1.2869, 1.2857, 1.2848