Firm tone ahead of UK retail sales data release
Cable ticked higher in early Friday’s trading and hit one-week high (1.3099) in extension of rally in past three days ahead of release of UK retail sales data.
Fresh recovery is underpinned by rising daily cloud which contained pullback from 1.3284 (31 Dec high) and probes above important 200WMA (1.3066) with weekly close above required to strengthen bullish stance.
UK retail sales (Dec m/m 0.5% f/c vs -0.6% prev / Dec y/y 2.6% f/c vs 1.0% prev) may boost pound on beat and spark acceleration through next pivot at 1.3137 (fibo 38.2% of 1.3514/1.2904).
Caution on disappointing figures which would add to concerns over weakening daily momentum and deflate sterling for renewed test of daily cloud top (1.3019).
Res: 1.3137; 1.3169; 1.3209; 1.3265
Sup: 1.3063; 1.3019; 1.3000; 1.2984