Cable is moving around falling 10SMA (1.3315) and holding within narrow range on Tuesday, after Monday’s action stalled on approach to key barrier at 1.3410 (falling 20SMA / 50% retracement of 1.3617/1.3204).
Subsequent easing resulted in daily close in red as well as below 10SMA, which was negative signal.
Flat momentum lacks clearer direction signals with focus on UK services PMI data, which could spark fresh acceleration.
UK Services PMI is forecasted at 52.9 in May vs 52.8 in Apr, with release above 53 expected to provide fresh support to sterling for renewed attack at 20SMA pivot.
Conversely, PMI miss could trigger fresh weakness and generate bearish signal on repeated close below 10SMA.
Res: 1.3332, 1.3362, 1.3398, 1.3410
Sup: 1.3302, 1.3253, 1.3204, 1.3153
