Cable is steady in early Wednesday’s trading and tested Tuesday’s high at 1.3186, where daily Kijun-sen capped the rally. Firm near-term tone following Tuesday’s rally signals further upside and test of daily cloud base (1.3214) which resisted attack last Friday.
Daily techs are improving and supportive for further advance, however, focus turns towards UK earnings data. Forecast for September stands at 2.1%, below 2.2% the previous month and weaker readings could slow near-term bulls.
Also, UK jobless claims are forecasted to rise in September 2.3K vs 1.7K in Aug while Unemployment rate is expected to stay unchanged at 4.3%.
Immediate support lies at 1.3167 (broken 20SMA) with 10 SMA (1.3138) expected to keep the downside protected.
Return below 100SMA (1.3115) will be bearish signal and would re-expose key supports at 1.3038/26.
Res: 1.3214; 1.3260; 1.3298; 1.3313
Sup: 1.3167; 1.3138; 1.3115; 1.3061
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