Cable remains constructive and extends recovery after Thursday’s flash crash and extends recovery towards pivotal Fibo barrier at 1.2694 (38.2% of 1.3174/1.2397 descend) in early European trading on Friday.
Strong downside rejection at 1.2400 zone left Hammer candle on Thursday and could be positive signal, along with revived bullish momentum, however, near-term performance is expected to be highly influenced by data.
UK Services PMI needs to beat forecast at 50.7 (Dec) to generate fresh signal, which would be confirmed by sustained break above 1.2694 Fibo barrier (reinforced by 30SMA).
US jobs data and speech of Fed’s Powell are the highlights of the US session.
Thick hourly cloud (1.2605/1.2549) marks solid support and only break below would weaken near-term structure.
Res: 1.2694, 1.2772, 1.2792, 1.2814
Sup: 1.2646, 1.2615, 1.2605, 1.2549
