Cable is establishing above 1.40 handle on Wednesday on fresh acceleration higher after bulls showed hesitation on Tuesday and ended trading in long-legged Doji, closing slightly below 1.40. Bullish continuation was triggered by fresh weakness of the US dollar which came under fresh pressure on global trade worries and concerns of trade message Trump administration will give at Davos meeting. Pound maintains strong bullish sentiment and continues to trend higher, focusing round-figure barrier at 1.4100 and Fibonacci 161.8% of current wave C of five-wave sequence from 1.3038 which lies at 1.4123. UK employment data are key event for sterling today. Unemployment is expected to stay unchanged at multi-year low at 4.3% in Nov while jobless claims are expected to drop (5.4K f/c vs 5.9% previous month). Average earnings including bonus are forecasted at 2.5% in Nov, unchanged from the previous month and at the highest in eleven months. Stable jobs sector is another boost for overall bullish pound with positive shift in Nov expected to further accelerate bulls. Broken 1.40 barrier now reverted to initial support, followed by Tuesday spike low at 1.3915, reinforced by rising 7SMA and guarding ascending 10SMA (1.3849) which marks strong support.
Res: 1.4100, 1.4123, 1.4197, 1.4250
Sup: 1.4000, 1.3915, 1.3849, 1.3804
. Average earnings including bonus are forecasted at 2.5% in Nov, unchanged from the previous month and at the highest in eleven months. Stable jobs sector is another boost for overall bullish pound with positive shift in Nov expected to further accelerate bulls. Broken 1.40 barrier now reverted to initial support, followed by Tuesday spike low at 1.3915, reinforced by rising 7SMA and guarding ascending 10SMA (1.3849) which marks strong support.){kind=link}