GBPUSD

Cable is trading within 1.2900/40 range in early Wednesday’s trading after failing to capitalize stronger on Monday’s upbeat UK inflation data. The pair spiked to 1.2955 but was unable to sustain gains, closing at 1.2914 (the second daily close below cracked 10SMA pivot).
The action remains underpinned by rising 20SMA (currently at 1.2890) and may be dragged higher by fresh strength of the Euro.
Bullish technicals are supportive for another attempt at psychological 1.3000 barrier, however, gains may be limited as falling thick weekly cloud heavily weighs on the market.
Repeated rejections under 1.3000 pivot and extension below 20SMA would weaken bullish structure and risk retest of lower pivots at 1.2840/30 zone.
Sterling is eyeing today’s UK jobs data for fresh signals. Unemployment rate is expected to stay unchanged at 4.7% in March, but forecast for Apr jobless claims and average earnings are very good (7.5K f/c vs 25.5K in Mar and 2.4% f/c for Apr vs 2.3% in Mar respectively) and could further support pound on forecasted or better releases.

Res: 1.2940; 1.2955; 1.2986; 1.3000
Sup: 1.2904; 1.2890; 1.2864; 1.2843