Bulls face strong headwinds from daily cloud; UK jobs data in focus
Cable maintains firm tone and pressures Monday’s six-week high (1.2384) in early European trading on Tuesday.
Lowered risk of no-deal Brexit continues to boost sterling after UK bill that blocks divorce without deal became law.
Cable advanced 0.59% on Monday, driven by better than expected UK GDP data and renewed optimism and generated bullish signal on formation of daily bullish engulfing pattern.
Fresh attempts higher penetrate at 1.2370 Fibo barrier (50% retracement of 1.27831.1958 descend).
UK jobs data are in focus today and eyed for fresh signals.
Earnings are forecasted unchanged in July (3.7%), the number of employed people is expected to drop on three months to July (53K vs 115K prev), jobless claims expected to rise in Aug (29.3K vs 28.0K prev), while unemployment is expected to remain unchanged at 3.9% in July.
Res: 1.2370; 1.2384; 1.2431; 1.2468
Sup: 1.2321; 1.2308; 1.2273; 1.2233