Cable accelerated lower in early Friday following repeated upside rejection at daily Tenkan-sen barrier (1.2494) and broke below hourly cloud, generating negative signal.
Subsequent easing made Thursday’s trading ending in red and fresh weakness on Friday, keeping near-term action under pressure.
The pair is holding between 100SMA (1.2414) and Tenkan-sen (currently at 1.2484) and break of either side is needed for clearer direction signals.
Daily technicals are bullishly aligned and expected to support for fresh upside attempts while 100SMA stays intact. The notion is supported by formation of 20/100SMA bull-cross).
Bullish scenario also requires sustained break above daily Tenkan-sen for another bullish signal.
On the other side, narrowing daily cloud is signaling risk of further easing.
Immediate focus is on speech of BOE’s Governor Carney, which could drag sterling lower, if dovish tone will prevail in his speech.
Stronger downside risk to be expected on violation of 1.2414/00 (100SMA / 30 May low).
US jobs data are also eyed for stronger signals.
Res: 1.2476, 1.2484, 1.2504, 1.2529
Sup: 1.2438, 1.2414, 1.2400, 1.2360
