Cable closed in red on Tuesday and generated another negative signal after Harami pattern was formed on Fri/Mon. The pair came under additional pressure after yesterday’s terrorist attack in Manchester, keeping the downside vulnerable. Technical studies on lower timeframes are weak with indicators on daily chart pointing lower that may shift near-term bias. First triggers and strong supports lay at 1.2945/35 (converging 10/20SMA’s), loss of which would generate stronger bearish signal for fresh extension of pullback from highs at 1.3045 zone, as descending thick weekly cloud continues to weigh. Further easing would expose next pivotal supports at 1.2843/30, break below which is needed to confirm reversal. Conversely, break and close above 1.3000 barrier would neutralize immediate bearish threats. With no releases of economic indicators from the UK today, turns focus towards US housing data and more significant FOMC minutes, which may give more clues whether the Fed remains on track for rate hike in June.
Res: 1.3000, 1.3033, 1.3046, 1.3087
Sup: 1.2945, 1.2935, 1.2888, 1.2843
