Cable stands at the back foot in early Tuesday, following Monday’s close in red and repeated upside rejection under strong barriers at 1.2977/81, provided by daily cloud top/descending 30SMA. Fresh weakness is pressuring pivotal support at 1.2905 (daily cloud base/20SMA, also near Fibo 38.2% of 1.2773/1.2995 upleg), break of which would generate bearish signal for further weakness towards 1.2958/52 (Fibo 61.8%/31 Aug spike low). UK Services PMI is the key release for the pound today (forecast for Aug is 53.5 vs 53.8 in July) and weaker than expected number could further pressure sterling.
Res: 1.2939, 1.2965, 1.2981, 1.3000
Sup: 1.2905, 1.2884, 1.2852, 1.2825
