Cable stands at the back foot and pressures key support at 1.2897 (Fibo 38.2% of 1.2661/1.3043 rally), following two-day pullback from last week’s recovery high at 1.3043 and Monday’s gap-lower opening. Near-term bulls are running out of steam as strong bullish momentum started to ease and slow stochastic continues to trend lower following reversal from overbought territory. Confirmation of reversal needs close below Fibo support at 1.2897 to trigger deeper pullback and expose next strong support at 1.2852 (20SMA/50% retracement). The pair looks for further signals from today’s release of UK Manufacturing PMI (Aug f/c 53.9 vs 54.0 prev).
Res: 1.2928, 1.3000, 1.3028, 1.3045
Sup: 1.2897, 1.2852, 1.2807, 1.2751
