Cable rallied on higher than expected UK Services PMI data which rose to 54 in May (the highest since Feb) beating forecast at 52.9. Fresh bullish acceleration from pre-data low at 1.3333 hit session high at 1.3384 and also broke above cracked barrier at 1.3362 (Fibo 38.2% of 1.3617/1.3204) with eventual close above here (following repeated failures on Fri/Mon) to generate bullish signal. Near-term picture improved on fresh rally, turning near-term bias higher, however, close above Monday’s spike high at 1.3398 is seen as minimum requirement to keep bullish bias for test of key barrier at 1.3410 (50% of 1.3617/1.3204 / falling 20SMA). Firm break here would signal continuation of recovery from 1.3204 (29 May low). Converged 5/10SMA are attempting to form bull-cross and mark solid support at 1.3325 which is expected to contain extended dips.
Res: 1.3398, 1.3410, 1.3459, 1.3499
Sup: 1.3362, 1.3333, 1.3302, 1.3253
