Cable commenced the second steep bear-leg in extension of pullback from Thursday’s fresh multi-month high at 1.3268. The pair was hit by BoE on Thursday and came under renewed pressure after Friday’s US jobs report, which showed very solid figures and boosted the dollar. Cable cracked next strong support at 1.3060 (Fibo 61.8% of 1.2932/1.3268 upleg) reinforced by rising 20SMA (currently at 1.3046), break of which would signal reversal and easily accelerate towards psychological 1.3000 support. Strong pullback has weakened the structure of near-term studies and increased risk of further easing, as reversed daily indicators show more room at the downside. Strength of current pullback would be measured by impact of today’s US jobs data after markets fully digest them, as more optimistic outlook for the Fed after data would further inflate the greenback and increase pressure on British pound, which is on track for bearish weekly close.
Res: 1.3112; 1.3133; 1.3164; 1.3190
Sup: 1.3046; 1.3000; 1.2985; 1.2953
