Cable returns to strength and retests European high at 1.3185, after shallow correction on mixed UK data found ground at 1.3136. UK GDP was flat in Aug vs 0.1% forecast while quarterly figure was 0.7% vs 0.6% f/c. Manufacturing production disappointed while IP ticked above consensus and trade gap widened in August. The pair showed minor reaction on data, with prevailing bulls on Brexit optimism remaining firmly in play. Close above broken Fibo barrier at 1.3154 (61.8% of 1.3297/1.2921) is likely and is going to generate bullish signal for 1.32+ gains. Focus turns on tomorrow’s US CPI releases which could generate fresh direction signals. Session low marks initial support at 1.3133, followed by a cluster of converged MA’s at 1.3102 (5/20/100SMA), which needs to keep the downside protected and maintain bullish bias.
Res: 1.3186; 1.3217; 1.3276; 1.3297
Sup: 1.3154; 1.3133; 1.3102; 1.3066
