Bounce on hawkish BoE MPC member seen as temporary relief
Cable bounced from new multi-month low at 1.3049 on Thursday and retested former key support at 1.3101, boosted by hawkish comments from BoE’s chief economist Haldane.
Bears showed hesitation on approach to strong supports at 1.3038 (03 Nov low) and psychological 1.30 support, but minor reaction could be expected as overall sentiment remains negative on lowered rate hike expectations and concerns of impact of Brexit on British economy.
In addition, bearish techs continue to support scenario for deeper fall on loss of 1.30 handle.
Falling 10SMA (1.3207) should keep the upside protected.
Res: 1.3120; 1.3150; 1.3207; 1.3287
Sup: 1.3049; 1.3038; 1.3026; 1.3000