- Positive UK’s labour market data on Wednesday combined with an increasing selling pressure around the USD support Cable higher.
- The major has extended upside above the key 1.29 handle, bias higher.
- The pair has broken above 1H 200-SMA at 1.2914 and minor trendline resistance at 1.2925 on the intraday charts.
- Technical indicators are biased higher and we see weakness only on break below key support at 20-DMA at 1.2844.
- US PPI and weekly jobless claims data along with day-2 of Yellen's testimony will be in focus for further price action.
Support levels - 1.2914 (1H 200-SMA), 1.29, 1.2888 (5-DMA), 1.2845 (20-DMA)
Resistance levels - 1.2983 (July 6 high), 1.30 (Double top and psychological level)
Recommendation: Good to go long on dips around 1.2930/40, SL: 1.2890, TP: 1.2980/ 1.30
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 83.4805 (Slightly bullish), while Hourly USD Spot Index was at -132.993 (Bearish) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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