Cable slides sharply after a minor jump till 1.3135 at the time of writing after weaker than expected UK inflation data. The pair has made a low of 1.30618 yesterday on UK political uncertainty and is currently trading around 1.30952.
UK CPI 0.09% came at 3.0% y/y compared to forecast of 3.1% but well above Bank of England inflation target of 2%. Market awaits BOE Carney speech to be happened today. UK jobs and wages data to be released tomorrow for further direction.
The pair hits intraday low of 1.307385 and shown a minor jump above 100- day MA at 1.3100. The pair should close above 1.3100 for further bullishness. Any daily close above 1.3100 will take the pair to next level till 1.3135/1.3180. Short term bearish invalidation only above 1.3230 ( 61.8% retracement of 1.3320 and 1.30390).
On the lower side, near term support is around 1.30600 and any break below will drag the pair to next level till 1.30270/1.3000/1.29235 (161.8% fibo).
It is good to sell on rallies around 1.3125-1.3130 with SL around 1.32300 for the TP of 1.3000/1.2925.
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