Upbeat PMI data inflate pound but more work at the upside needed to signal reversal
British pound followed Euro and bounced above 1.29 level after four-day fall was rejected at 1.2849 (nearly three-month low) on Thursday.
Upbeat UK PMI data (Jan Manufacturing 51.9 vs 49.7 f/c / Jan Composite 53.3 vs 52.8 f/c) inflated pound.
Fresh recovery attempts cracked broken Fibo 38.2% support (1.2919) which guards another pivot at 1.2943 (broken 100DMA) with break above these levels needed to generate stronger recovery signals and expose pivotal 1.30 resistance zone.
Rising momentum on daily chart is supportive but stochastic (on oversold boundary) and RSI are in sideways mode and so far without signals.
Repeated failure at 1.2919 Fibo level would keep the downside vulnerable, as larger picture remains negative and reversal pattern is forming on monthly chart, with massive monthly Ichimoku cloud weighing heavily.
Res: 1.2928; 1.2943; 1.2993; 1.3012
Sup: 1.2900; 1.2876; 1.2822; 1.2768