Sterling slumps after weak UK data and upbeat US figures
Cable extends weakness in the US session on Friday after being hit by weak US retail sales data that added to expectations of rate cut at the end of rge month’s BoE policy meeting, with additional pressure from upbeat US housing data (housing starts Dec 16.9% vs 2.6% prev, the highest in 13 years) that inflated dollar.
Fresh weakness tests again the top of rising daily cloud (which contained attacks in past few sessions), with break lower to signal further weakness and open pivotal supports at 1.12919/04 (Fibo 38.2% of 1.1958/1.3514 / 22 Dec trough).
Close below 200DMA would add to negative signals from south-heading daily indicators.
Res: 1.3066; 1.3118; 1.3146; 1.3209
Sup: 1.2954; 1.2919; 1.2904; 1.2821