Cable remains bid on Tuesday but still below Monday’s high at 1.3183, posted on short-covering rally.
Cable may extend correction of 1.3655/1.3026 downleg if bulls clearly break above initial barrier at 1.3183, which would open way for further recovery towards pivots at 1.3241 (daily Tenkan-sen), 1.3255 (falling 10SMA) and 1.3266 (Fibo 38.2%), break of which would generate stronger bullish signal.
Series of data from the UK are in focus today. UK Manufacturing Production is expected to rise by 0.2% in Aug vs 0.5% in July, while UK trade balance gap is expected to narrow to 11.2 billion pounds from 11.58 billion pounds gap in the previous month.
Near-term action is supported by 55SMA (1.3133), loss of which would signal an end of correction and shift focus towards key near-term points at 1.3018 (100SMA) and psychological 1.3000 support.
Res: 1.3183, 1.3200, 1.3241, 1.3255
Sup: 1.3133, 1.3110, 1.3074, 1.3026
