Cable stood at the back foot in Asia on Friday, with recovery attempts in early European trading, but near-term outlook is negatively aligned.
Thursday’s strong upside rejection which left daily candle with long upper shadow after falling 10SMA capped recovery, generated negative signal.
Daily / weekly techs are in strong bearish setup and keep the downside in focus for renewed attack at key 1.3205 support, where top of weekly cloud offered a footstep for larger downtrend from 1.4376.
Weekly close below 10SMA would offer fresh negative signal.
UK Manufacturing PMI is key release for sterling in the European session (May f/c 53.5 vs 53.9 in Apr) with release at below forecasted level to keep pound at the back foot.
Conversely, stronger than expected release would spark stronger bullish acceleration through 1.33 handle for retest of 10SMA (1.3331).
Bullish scenario on weekly close above falling 10SMA would neutralize existing downside risk and signal further recovery.
Res: 1.3300, 1.3331, 1.3348, 1.3410
Sup: 1.3253, 1.3241, 1.3205, 1.3153
