GBPUSD trades in extended directionless mode; waiting for direction signals
Cable remains in holding mode on Friday, entrenched between 100SMA (1.3104) and 10SMA (1.3160).
Bearish setup of 10 / 20 / 30 SMA’s and daily cloud above the price weigh on near-term bias, while neutral momentum studies and converged daily Tenkan-sen / Kijun-sen show lack of signal, confirming mixed picture on daily studies.
Initial direction signals will be generated on break through 100SMA at the downside or 10SMA at the upside.
Loss of 100SMA support would expose double-bottom at 1.3038/26 and psychological 1.3000 support.
Conversely, lift above 10 and 20SMA’s (1.3160 / 1.3173) would risk attack at daily cloud base (1.3214) and generate stronger bullish signal on break.
UK data (Manufacturing production / trade balance) and US tax plans / Brexit talks are in focus for fresh signals.
Res: 1.3160; 1.3173; 1.3182; 1.3214
Sup: 1.3104; 1.3085; 1.3057; 1.3038