Cable regains traction and emerges above thick hourly cloud, in renewed attempt again at1.3200 barrier, following yesterday’s repeated rejection at 1.3222 and daily close in red, the first after four consecutive strong bullish days.
Overall structure remains firmly bullish while the price holds above daily cloud top (1.3075) and sees scope for final push towards key barrier at 1.3268 (03 Aug peak).
UK CPI data are in focus today and may boost pound further if release comes at/above forecast at 2.8% for August (vs 2.6% in July).
Sustained break above 1.3268 (also 2017 high) would open way towards 1.3473 (weekly cloud top/50% retracement of larger 1.5016/1.1930 descend).
Conversely, weaker than expected inflation numbers could spark fresh weakness through 1.3159 (lows of today/Monday) and risk retest of daily cloud top.
Res: 1.3203, 1.3224, 1.3268, 1.3300
Sup: 1.3159, 1.3093, 1.3075, 1.3046
