Cable bounced from fresh 2 ½ week low at 1.3228, posted in Asia, consolidating strong fall on Monday and keeping bearish near-term stance.
Initial probe below daily Kijun-sen (1.3253) did not result in clear break lower. Bears are expected to consolidate before fresh push lower for test of rising 30SMA (1.3209) and possible extension towards 55SMA at 1.3120).
Monday’s close below weekly 100SMA (1.3363) and Fibo 61.8% of 1.3148/1.3655 upleg generated bearish signals, turning these points to resistances which should ideally cap upside attempts.
Today’s focus is on UK Construction PMI data. Forecast for September lies at 51.0 vs 51.1 in Aug, with lower than expected release to put sterling under fresh pressure (especially if Sep release falls below 50 threshold), while upside surprise would support pound for further recovery.
Res: 1.3287, 1.3342, 1.3363, 1.3401
Sup: 1.3253, 1.3228, 1.3209, 1.3148
