Cable regained traction and attacks pivotal barriers ahead of UK PMI data

Cable bounced above 1.2700 mark on Wednesday morning, keeping bullish bias after Tuesday’s close in red and indecision signal from strong rejection on both sides.

Fresh strength cracks again pivotal barriers at 1.2710/20 (converged 10/20DMA’s / Fibo 61.8% of 1.3141/1.2037) which so far resisted several attacks.

Close above these levels is needed to signal bullish continuation of recovery leg from 1.2596 (Jan 17 low) and expose target at 1.2785 (Jan 12 lower top) which guards key barrier at 1.2875 (Dec 28 peak and six-month high).

Technical studies are bullishly aligned on daily chart (14-d momentum is holding in the positive territory and RSI rose from neutral zone) and support the action for now.

Tuesday’s spike low (1.2649) marks initial support, followed by more significant rising 55DMA / weekly cloud top (1.2610/00).

Markets focus on release of UK January flash PMI’s (Manufacturing 46.7 f/c vs 46.2 prev / Services 53.2 f/c vs 53.4 prev) for fresh direction signals.

Res: 1.2747; 1.2785; 1.2827; 1.2844
Sup: 1.2649; 1.2610; 1.2589; 1.2551