Headwinds may delay continuation of larger uptrend
Cable keeps firm tone on Thursday, but holding within about 70-pips range, with little impact from today’s better than expected US data.
Sterling was inflated on Wednesday by UK inflation data which showed persisting inflationary pressures and weak US retail sales, hitting the one-month high on probe above 1.2400 barrier and almost fully retracing 1.2446/1.1841 pullback.
Structure on daily remains bullish and underpins the action for continuation of larger uptrend from Sep 26 low (1.0348), which was paused rally for correction in past few months, though bulls may struggle to break higher, due to headwinds from key barriers at 1.2446/55 (former top of Dec14 / base of falling weekly cloud.
Prolonged consolidation could be likely near-term scenario, with bullish bias to remain intact while the price holds above rising daily Tenkan-sen (1.2259).
Res: 1.2446; 1.2455; 1.2500; 1.2589
Sup: 1.2313; 1.2255; 1.2215; 1.2151