Cable ticked higher in early European trading on Monday, after holding in tight range in Asia. Directionless mode was signaled by long-legged weekly Doji candle and is likely to extend after last Friday’s strong upside rejection at falling 55SMA (currently at 1.3015) which marks key near-term resistance.
Conflicting daily studies support the notion as MA’s are in mixed mode, momentum is weakening, while slow stochastic heads north.
The pair looks for stronger signals which could be generated from a series of data from the UK this week.
GDP (0.2% f/c vs 0.1% prev), Manufacturing production (July 0.2% f/c vs 0.4% prev) and trade balance are key events today.
UK jobs data will be released on Tuesday, while key event this week, BoE policy decision is due on Thursday.
Stronger bullish signal could be expected on sustained break above 55SMA, while the structure would weaken on loss of pivotal support at 1.2865 (20SMA).
Res: 1.2982, 1.3015, 1.3043, 1.3104
Sup: 1.2896, 1.2865, 1.2810, 1.2785
