Cable remains positive despite weak UK GDP numbers, with all eyes on the US CPI and Fed decisions.

Cable edged higher in European trading on Wednesday, showing little reaction to overall negative UK economic data, including flat GDP in April and sharp declines in construction and manufacturing output. Traders are awaiting the release of US CPI data and signals from the Fed at the end of its two-day policy meeting.

US inflation is anticipated to ease, and the central bank is widely expected to maintain its current policy stance. Attention will be on the Fed’s projections, which will offer fresh signals regarding the timing and pace of any rate cuts.

Traders are also focused on the Bank of England’s policy meeting next week, where the central bank is likely to keep interest rates unchanged for the seventh consecutive time.

Improving daily indicators, such as rising momentum and moving averages mainly in a bullish configuration, support near-term action, with long shadows on the last two daily candles indicating strong bids.

However, a sustained break above the 1.2753 pivot (Fibonacci 76.4% retracement of 1.2893/1.2299 and 10-day moving average) is needed to confirm the signal.

A bullish near-term bias is expected as long as the price remains above the rising 20-day moving average at 1.2736, while a return below the 1.2680 higher base would be considered bearish.

Res: 1.2768; 1.2786; 1.2803; 1.2817
Sup: 1.2736; 1.2680; 1.2666; 1.2638