Cable maintains bullish control as markets await key US economic data

Cable surged past the 1.3400 level on Tuesday morning, supported by stronger-than-expected preliminary December Manufacturing and Services PMIs, which offset weaker labor data.

Sterling remains firm, holding just below a near two-month high, as markets anticipate key US economic releases later in the day, including the combined October/November labor report, October retail sales, and December preliminary PMIs. These figures, particularly labor data, are expected to guide the Fed’s near-term monetary policy, with markets widely anticipating another rate cut in January and a more dovish stance.

Technically, the daily chart remains firmly bullish, with price action above the top of the thick, sideways-moving daily cloud. Moving averages are aligned bullishly, reinforced by a recent 10/200DMA golden cross, though positive momentum shows signs of fading.

Near-term, the bias remains upward while above the cloud top at 1.3367 (supported by rising daily Tenkan-sen), with potential upside targets at Thursday’s spike high of 1.3438, followed by 1.3471 (October 17 lower top) and the psychological 1.3500 level.

Res: 1.3438; 1.3471; 1.3500; 1.3527
Sup: 1.3400; 1.3367; 1.3342; 1.3295