Cable rallied after solid UK GDP data and retested pivotal barrier at 1.3395 (Fibo 38.2% of 1.3549/1.3301/20SMA).
Final GDP was confirmed at 0.4% (q/q), unchanged from Q2 and along with expectations.
Annualized GDP came at 1.7% against 1.5% consensus and Q2 revised to 1.9% from 1.5%.
Fresh strength comes after strong downside rejection on Thursday when dip was contained by key supports – rising 30SMA and daily cloud top.
Thursday’s long-tailed daily candle underpins the action, however, close above 1.3395 barrier is needed to signal further advance towards 1.3464 (14 Dec spike high). However, risk of extended sideways trading is signaled by long tail/upper shadow of candles in past two days.
Also, slower pace could be expected on thin holiday trading.
Res: 1.3395, 1.3420, 1.3447, 1.3464
Sup: 1.3357, 1.3331, 1.3300, 1.3270
