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Technical Outlook: Cable Breaks Below Key Supports After Weaker Than Expected UK Inflation Data

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

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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