Cable remains in red on Friday and probes below psychological 1.30 support, in extension of strong fall on Thursday.
Pound was sharply lower on Thursday after the BoE increased interest rate by 0.25% but signaled that won’t be in hurry for the next hike.
Today’s break of 1.30 pivot was negative signal which could boosted if UK Services PMI fall below expectations (54.7 f/c for July vs 55.1 in June).
Weaker than expected UK data could further sour already weak sentiment, also boosted by strong Brexit concerns.
In addition, US jobs data may hit pound on solid figures in July, which could result in retest of key near-term support at 1.2957 (19 July low) and bear-channel support line (1.2908) in extension.
Stronger bearish acceleration would pressure next pivotal support at 1.2865 (Fibo 61.8% of larger 1.1930/1.4376 rally).
Daily studies in full bearish setup support the notion.
Alternative scenario on upbeat UK and weaker than expected US data would risk stronger bullish acceleration.
Falling 10SMA marks first strong barrier (1.3102), followed by 20SMA (1.3137) with close above here needed to sideline immediate bears.
Res: 1.3027, 1.3082, 1.3102, 1.3137
Sup: 1.2985, 1.2957, 1.2897, 1.2865
