Cable was consolidating in narrow range between 1.37600 and 1.39240 for the past five trading days. The pair has formed bearish flag pattern in the hourly chart and any break below down channel trend line will confirms minor weakness.
UK CPI 0.11% came flat at 3% for the month of Jan but slightly above forecast of 2.9% Y/Y. While core inflation shown a mild jump till 2.7% vs. 2.6%. The pair shown a minor jump but market awaits US CPI 0.11% and retail sales data which is to be released for further direction.
Technically on the lower side, near term support is around 1.38600 and any break below will drag the pair down till 1.37975/1.37600 (Feb 9th -3.83% low)/1.3700 (61.8% fibo).
The near term resistance is around 1.3920 and break above will take the pair till 1.3945 (200- H EMA )/1.4000.
It is good to sell below 1.38600 with SL around 1.3920 for the TP of 1.3920 for the TP of 1.3760/1.3700.
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