Cable bounced some 30-pips from session low at 1.3523 after UK data and looks to catch fresh bid.
UK average earnings missed forecast (2.6% in Mar vs 2.7% f/c and 2.8% previous) and jobless claims unexpectedly jumped to 31.2K in Apr vs 13.3K f/c and downward revised Mar figure at 15.7, but negative impact was partially offset by better than expected employment data which jumped to 197K in Q1, beating forecast at 129.
Sentiment for BoE rate hike in August remains at 50/50 as today’s releases provided little help to improve the outlook.
Pound remains bid after releases, but key barriers at 1.3608/17 are still far.
Near-term action is also weighed by thick falling 4-hr cloud and formation of 10/200SMA bear-cross, which could keep the downside at risk.
Stronger direction signal could be expected on break of either boundary of near-term range.
Res: 1.3571, 1.3617, 1.3676, 1.3733
Sup: 1.3523, 1.3500, 1.3484, 1.3460
