Downbeat UK jobs data could pressure pound towards key supports at 1.2700 zone
Cable eases in early European trading on Tuesday, following previous day’s advance on Brexit party news.
Monday’s rally failed to break 1.29 barrier and closed below pivotal daily Tenkan-sen (1.2872).
Fresh weakness pressures supports at 1.2822/19 (last Friday’s high / Fibo 23.6% of 1.2195/1.3012), loss of which would expose Friday’s three-week low (1.2768) and risk deeper pullback.
Rising bearish momentum on daily chart supports negative scenario, which could be boosted by UK jobs data, as forecasts are negative.
UK employment (Sep -94K f/c vs -56K prev) would suffer the biggest drop in eight years, with jobless claims expected to rise (Oct 24.2K vs 21.1K prev), while earnings and unemployment are expected to remain unchanged (3.8% and 3.9% respectively).
Downbeat UK jobs data would weaken pound and risk test of key supports at 1.2700 zone (200DMA (Fibo 38.2% of 1.2195/1.3012).
Only firm break above daily Tenkan-sen would neutralize bearish threats.
Res: 1.2865; 1.2872; 1.2897; 1.2942
Sup: 1.2819; 1.2785; 1.2768; 1.2700