UK’s data earlier were a mixed bunch. Sterling did push higher but was capped by the 20EMA on the 4-hourly chart. There is also another strong resistance at 1.2960. This was also a previous range low and has now become the support turned resistance level. We remain bearish on this pair and we are looking at 12810 over the next couple of days.
We are expecting resistance at 1.2960 to capped the rally together with resistance provided by the 20EMA. From this resistance zone, we are expecting price to move lower to test 1.2870 initially before going lower later to 1.2810.
Strategy
Look to sell 1.2960 with stop above 1.3000 for 1.2870.