Cable remains constructive in early Friday’s trading, modestly supported by surprise results of election in eastern England and better than expected UK May housing data, released this morning Fresh upside attempts remain for now capped by falling 20SMA (1.2715) which limited the action of past two days. Two daily candles with long upper shadows signal that recovery from 1.2559 (31 May low) might be running out of steam. The notion is supported by momentum turning sideways at the centerline and stochastic turning south. However, near-term action lacks direction and looks for a catalyst to break out of congestion. US jobs data are the key event today and may provide fresh direction signal. Strong numbers may shift near-term focus lower for attempt below pivotal 10SMA support (1.2663) close below which will be bearish signal. Disappointing US labor data would push sterling for eventual break above 20SMA, but bulls will require confirmation on close above pivotal Fibo barrier at 1.2796 (38.2% of 1.3179/1.2559 descend).
Res: 1.2715, 1.2743, 1.2796, 1.2823
Sup: 1.2689, 1.2663, 1.2610, 1.2580
