Cable is holding on the front foot in early Thursday’s trading, following strong bounce from 100 SMA support (1.2414), driven by upbeat UK data on Wednesday. The price emerged above daily cloud but remains capped by daily Tenkan-sen (1.2494) for now. Daily cloud is narrowing and will twist next week that may drag sterling lower again. Studies on daily chart remain bullishly aligned and favor further upside, which needs sustained break above Tenkan-sen barrier. Also, thick hourly cloud (1.2484/1.2440) continues to underpin (near-term action is holding around cloud top) This scenario requires top of narrowing daily cloud (currently at 1.2457) to keep the downside protected. Conversely, extended weakness below hourly cloud would generate bearish signal and risk retest of 100 SMA pivot.
Res: 1.2494; 1.2529; 1.2553; 1.2594
Sup: 1.2471; 1.2457; 1.2440; 1.2414
