Cable stands at the front foot and attacks again falling 20SMA (1.2686) which so far capped several attempts in past few sessions.
Pound maintains positive tone, despite cautious tone from the BoE regarding significantly intensifying uncertainty over Brexit.
Strengthening momentum on daily chart underpins, but repeated rejections at 1.2700 zone in past three days that left daily candles with long upper shadows, along with overall negative setup of daily studies, warn of stall.
Markets are awaiting release of UK data today for fresh signals, with trade gap forecasted to widen in Q3 (-21.7B f/c vs -20.3B in Q2) while UK GDP is expected to remain unchanged in Q3 (1.5% y/y / 0.3% q/q).
Softer than expected numbers could hurt pound and increase risk of pullback.
Bullish scenario requires sustained break above 20SMA to generate initial positive signal, with extension and close above pivot at 1.2743 (Fibo 38.2% of 1.3174/1.2476) needed to confirm and signal further recovery.
Res: 1.2707, 1.2743, 1.2760, 1.2810
Sup: 1.2643, 1.2609, 1.2564, 1.2528
