GBPUSD – bid tone above 1.3500; UK data in focus
Cable ticked higher in early European trading on Thursday after holding within tight range in Asia.
Wednesday’s strong close in red after four consecutive bullish days was negative signal, but dips were so far limited at 1.3493 (Fibo 38.2% of 1.3301/1.3612 upleg) which marks pivotal support.
North-heading daily MA’s maintain bullish structure and offset negative signals from descending momentum and slow stochastic.
Renewed attempts above 1.3600 barrier could be expected while 1.3493 support holds, however, the pair may stay in extended consolidation before bulls resume.
Retest of Wednesday’s high at 1.3612 would open way towards key barrier at 1.3655 (2017 high).
Alternatively, deeper correction could be anticipated on break below 1.3493 pivot, with extended dips to focus daily Tenkan-sen (1.3472) and rising 10SMA (1.3447).
Release of UK Service PMI for December is in focus, with fresh bullish acceleration expected on better than expected figure.
Res: 1.3549; 1.3600; 1.3612; 1.3655
Sup: 1.3505; 1.3493; 1.3472; 1.3447