Cable holds in strong bullish mode in early US trading on Tuesday, following nearly 1% advance in Asia and Europe.
Fresh bullish sentiment emerged from optimistic comments about Brexit and boosted by upbeat UK earnings data (Sep ex-bonus 3.2% vs 3.1% f/c/prev and Sep earnings including bonus in line with 3.0% f/c and Aug figure at 2.8%, revised from 2.7%).
Strong earnings data offset negative impact from unexpected rise in jobless claims (20.2K vs 4.3K f/c) and Sep unemployment rising to 4.1% vs 4.0% f/c/prev.
Strong bullish acceleration is on track to fill Monday’s gap and generate bullish signal on formation of bullish outside day.
Bulls pressure key barrier at 1.2980 (daily cloud base, reinforced by 10SMA/Kijun-sen) with firm break here needed to neutralize downside risk and signal stronger recovery through psychological 1.30 barrier towards next pivots at 1.3042/46 (Fibo 61.8% of 1.3174/1.2827 fall/daily cloud top).
The Brexit talks remain key event and main driver of sterling, with further optimistic tone likely to accelerate recovery.
Res: 1.2980; 1.3000; 1.3046; 1.3092
Sup: 1.2946; 1.2909; 1.2878; 1.2838
