Cable is holding within narrow range on Friday, showing mild reaction on UK data (Q1 GDP came in line with expectations / previous, while trade deficit widened significantly in Q1 but fell below expectations).
The action in past two days was directionless and holding between converging 10DMA (1.2663) and 5DMA (1.2692).
Fears of no-deal Brexit continue to weigh, but mixed studies on daily chart lack clearer direction signal.
Near-term action looks for a catalyst to break out of current congestion and generate initial direction signal.
Extension below 10DMA and converged flat daily Tenkan / Kijun-sen would increase downside risk. Conversely, lift above 5DMA would expose key barrier at 1.2763 (Fibo 38.2% of 1.3179/1.2505) for retest.
Res: 1.2691, 1.2724, 1.2763, 1.2783
Sup: 1.2663, 1.2644, 1.2611, 1.2571
