Cable is taking a breather after three-day bearish acceleration faced strong headwinds on approach to strong supports at 1.3223/14 (rising 30SMA/Fibo 50% of 1.2773/1.3655 ascend.
Consolidation above Tuesday’s low at 1.3221 was so far limited by thick hourly cloud (spanned between 1.3278 and 1.3327) which weighs on near-term action and expected to keep the upside protected.
Selling upticks remains favored for renewed attack at 30SMA/Fibo 50% supports, break of which would trigger bearish acceleration towards 1.3124/10 (rising 55SMA/Fibo 61.8% of 1.2773/1.3655).
Conversely, lift above daily Tenkan-sen (1.3408) would neutralize bears and shift focus higher.
UK’s Services PMI data for September are in focus today. Forecast shows unchanged value at 53.2 from August, with scenario of PMI falling below forecast (like on Tuesday’s Construction PMI miss) would put pound under increased pressure.
Res: 1.3287, 1.3327, 1.3367, 1.3408
Sup: 1.3223, 1.3214, 1.3148, 1.3124
