Cable Remains Under Pressure. Focus on Flash PMI's

Extended recent pullback through Wednesday, the rate posting a low Tuesday of $1.2711 into Tuesday's 1600BST fix before settling around $1.2735 into the close. Rate managed to nudge to $1.2748 in early Asian trade before Tokyo returned and added fresh USD demand, with some suggesting USD buys prompted by the stop gap funding agreement in the US. Cable dropped back to $1.2716 but needed early Europe to provide added weight to to take it through Tuesday's low and on to $1.2680(at writing). Support suggested between $1.2680/70, a break to expose $1.2650/40, with a short term technical target emerging at $1.2612(1.618% swing projection of the recent recovery from $1.2763 to $1.3007). Resistance now seen into $1.2750. Flash PMI's provide the morning interest, EZ releases from 0815BST through to 0900BST, with UK at 0930BST. US flash PMI the data interest in the US with a decent list of Fed speakers to follow(chance Tuesday's hawkish comments from Fed Evans may be countered). Moves continue to be USD led with EUR/GBP clinging close to its 10-dma.

MNI Techs: GBPUSD remains bearish. The pair extended its current bearish run yesterday and confirmed a clear break of support at 1.2763, Sep 11 low. Price is testing 61.8% of the Jun 29 - Sep 1 rally at 1.2722 hold. A clear breach would reinforce bearish conditions and open 1.2644, Jul 22 low. Key resistance is at 1.3007, Sep 16 high. Initial resistance resides at 1.2867.