Cable remains at the front foot and extends recovery in early Wednesday’s trading, testing key barriers at 1.2793 (daily cloud top / 55SMA). Fresh acceleration higher on extended profit-taking was boosted by bullish Outside Day pattern which was formed on strong rally on Tuesday. The pair may extend corrective rally on sustained break above 1.2793/1.2806 resistance zone (which includes daily Tenkan-sen at 1.2806) towards next pivots at 1.2841/47 (daily Kijun-sen/Fibo 61.8% of 1.2977/1.2638). The pair is awaiting today’s events, UK jobs data (jobless claims are expected to rise in May, while average earnings and unemployment rate are forecasted unchanged) and the outcome of FOMC policy meeting as well as Thursday’s UK Retail Sales and results of BOE MPC meeting for fresh signals.
Res: 1.2793, 1.2806, 1.2847, 1.2882
Sup: 1.2738, 1.2695, 1.2638, 1.2622
