Cable stands at the back foot on Wednesday and pressuring strong support at 1.3300 zone (Tuesday’s low / daily Kijun-sen) which contained Tuesday’s weakness.
Bearish daily candles with long upper wicks, left on Mon / Tue, weigh on the price for break through 1.3300 handle and extension towards top of widening daily cloud 55SMA (1.3253), which marks strong support.
Daily techs are losing traction and building more support for bears, however, strongly oversold slow stochastic on daily chart requires caution.
UK jobs data are key event for sterling today. Jobless claims are expected to rise in November (3.2K f/c vs 1.1K in Oct) while unemployment is forecasted to dip to 4.2% in Oct from 4.3% previous month.
Focus is on average earnings which are expected to rise to 2.5% in Oct from 2.2% previous month.
Cable could come under increased pressure if UK earnings fall below forecast today, while upbeat numbers would boost pound for stronger bounce from 1.3300 support zone.
Res: 1.3335, 1.3352, 1.3379, 1.3415
Sup: 1.3300, 1.3253, 1.3233, 1.3190