Sterling holds in red ahead of UK retail sales
Cable stands at the back foot ahead of release of UK retail sales on Thursday, after being pressured further from weaker than expected UK inflation data and ended Wednesday’s trading in red.
Fresh weakness in past few sessions retested the floor of near-term congestion and eyes psychological 1.30 support (also Fibo 38.2% of larger 1.2397/1.3381) violation of which would open way for attack at key 200SMA support (1.2970).
Weak retail sales results (Mar m/m -0.3% f/c vs 0.4% prev) would support negative scenario.
Falling 10SMA (1.3056) caps the action for the second straight day and marks initial barrier, guarding pivots at 1.3087/93 (converging 55/20SMA’s).
Res: 1.3056; 1.3075; 1.3093; 1.3127
Sup: 1.3000; 1.2970; 1.2952; 1.2889