Cable extends recovery from Asian low at 1.2642 after renewed weakness on Monday approached Friday’s spike low and key support at 1.2635.
Fresh acceleration higher on upbeat UK inflation data (2.9% in May vs forecast/April at 2.7%, the highest since July 2013) is for now holding below thick hourly cloud (cloud base lies at 1.2728).
Penetration into hourly cloud would signal extended recovery towards strong barriers at 1.2769 (Monday’s high) and 1.2782/86 (55SMA/daily cloud top).
Overall bearish tone suggests limited recovery before fresh attempts towards targets at 1.2620 (100SMA) and 1.2569 (200SMA), with extension towards 1.2548 (daily cloud base) seen on stronger bearish acceleration. Only break above daily cloud top would signal stronger correction of last Friday’s 1.2955/1.2635 post-election fall.
Res: 1.2717, 1.2728, 1.2769, 1.2786
Sup: 1.2678, 1.2642, 1.2635, 1.2620
