GBPUSD holds negative tone under daily cloud; UK data in focus
Cable is in directionless mode in early Tuesday’s trading but maintaining negative bias following Monday’s bearish close and awaiting UK data for fresh signals.
Rising 100SMA and Fibo 61.8% of 1.2773/1.3655 (1.3112/10) are marking immediate supports which kept the downside protected in past few sessions despite multiple spikes lower.
Overall structure is bearishly aligned with negative tone persisting while daily cloud caps (cloud base lies at 1.3214).
Plethora of MA barriers that lies in between also weighs on near-term action for clear break of 100SMA and test of key supports at 1.3038/26 (02 Nov / 06 Oct low) which mark the base of five-week congestion between 1.3026 and 1.3337.
Better than expected data today would lift pound however, sustained break above daily cloud (1.3214/1.3262) is needed to confirm bullish action.
Conversely, disappointing numbers would risk final break through 1.3038/26 pivots for continuation of broader downtrend from 1.3655 (20 Sep peak.
Res: 1.3139; 1.3165; 1.3176; 1.3214
Sup: 1.3090; 1.3061; 1.3038; 1.3026