Sample Category Title

Cable accelerated lower in early hours of European session, remaining at the back foot and attempting to extend post-Fed weakness.

Double upside rejection and Thursday's close below daily cloud base were bearish signals, with stronger dollar after Fed and on expectations of US jobs data upside surprise, keeping sterling pressured.

Adding to the outlook were results of UK local elections, where two major parties suffered heavy losses.

Daily studies maintain bearish momentum and stochastic turned south, with falling 30 SMA capping the action and maintaining pressure (currently at 1.3043).

On the other side, solid supports lay at 1.3011/08 (Fibo 38.2% of 1.2865/1.3102/20SMA reinforced by formation of 2/20SMA bull-cross) and break here would generate fresh bearish signal and risk further easing.

UK Services PMI data are in focus in European session (Apr 50.4 f/c vs 48.9 prev) and strong reading would challenge fresh bears, however, the downside is expected to remain vulnerable if the pair fails to break and close above 30SMA.

US jobs data are key event today (Apr NFP 179K f/c vs 182K Mar and Average Hourly Earnings (Apr 3.3% f/c vs 3.2% Mar) and solid results would further boost dollar and increase pressure on pound. Sustained break of 20SMA would risk extension towards key supports at 1.2960/56 (200SMA/Fibo 61.8% of 1.2865/1.3102).

Res: 1.3043, 1.3080, 1.3102, 1.3157
Sup: 1.3008, 1.2983, 1.2960, 1.2921

Pivot (invalidation): 62.30

Our preference Short positions below 62.30 with targets at 61.10 & 60.70 in extension.

Alternative scenario Above 62.30 look for further upside with 62.75 & 63.10 as targets.

Comment As Long as the resistance at 62.30 is not surpassed, the risk of the break below 61.10 remains high.

Pivot (invalidation): 14.6900

Our preference Short positions below 14.6900 with targets at 14.5500 & 14.4400 in extension.

Alternative scenario Above 14.6900 look for further upside with 14.8200 & 14.8800 as targets.

Comment The RSI lacks upward momentum.

Pivot (invalidation): 1273.00

Our preference Short positions below 1273.00 with targets at 1266.00 & 1264.00 in extension.

Alternative scenario Above 1273.00 look for further upside with 1277.50 & 1280.00 as targets.

Comment As Long as the resistance at 1273.00 is not surpassed, the risk of the break below 1266.00 remains high.

Pivot (invalidation): 2929.50

Our preference Short positions below 2929.50 with targets at 2900.50 & 2892.00 in extension.

Alternative scenario Above 2929.50 look for further upside with 2941.75 & 2953.50 as targets.

Comment The RSI is mixed to bearish.

Pivot (invalidation): 12380.00

Our preference Short positions below 12380.00 with targets at 12285.00 & 12245.00 in extension.

Alternative scenario Above 12380.00 look for further upside with 12412.00 & 12440.00 as targets.

Comment The RSI lacks momentum.

Pivot (invalidation): 5.9560

Our preference Long positions above 5.9560 with targets at 5.9800 & 6.0000 in extension.

Alternative scenario Below 5.9560 look for further downside with 5.9400 & 5.9260 as targets.

Comment A support base at 5.9560 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 0.7010

Our preference Short positions below 0.7010 with targets at 0.6985 & 0.6970 in extension.

Alternative scenario Above 0.7010 look for further upside with 0.7030 & 0.7050 as targets.

Comment A break below 0.6985 would trigger a drop towards 0.6970.

Pivot (invalidation): 1.3450

Our preference Long positions above 1.3450 with targets at 1.3480 & 1.3505 in extension.

Alternative scenario Below 1.3450 look for further downside with 1.3425 & 1.3400 as targets.

Comment The break above 1.3450 is a positive signal that has opened a path to 1.3480.

Pivot (invalidation): 1.0185

Our preference Long positions above 1.0185 with targets at 1.0205 & 1.0215 in extension.

Alternative scenario Below 1.0185 look for further downside with 1.0165 & 1.0150 as targets.

Comment The RSI calls for a new upleg.