Cable is holding within narrowing daily cloud in early Tuesday and so far unable to break cloud top after bouncing from double downside rejection at 1.2360 (daily Kijun-sen/30SMA). Mixed studies suggest no clear direction, as the pair is stuck between 30 and 10SMA’s. Support at 1.2360 also marks 50% retracement of 1.2107/1.2613 upleg and guards another pivotal support at 1.2345 (daily cloud base). The pair is awaiting release of UK inflation data for firmer direction signals. Forecast for annualized CPI for March stands at solid 2.3% and pound is looking for release above, to spark fresh acceleration towards upper pivot at 1.2500 zone. Better than expected inflation numbers today would also support scenario of BOE’s early rate hike. Conversely, release below consensus would put sterling under fresh pressure and re-expose lower pivots at 1.2360/45.
Res: 1.2430, 1.2458, 1.2500, 1.2553
Sup: 1.2401, 1.2360, 1.2345, 1.2300
