Finding Some Buoyancy Below $1.2700

Release of UK flash PMI data provided sterling with some support Wednesday, allowed cable to recover off a traded low of $1.2676 to $1.2777 at the 1600BST fix before drifting lower through the NY afternoon to $1.2708, closing the day at $1.2725. Sterling was the best performer vs the USD in G10 Wednesday, only by the fact it didn't lose as much as others. EUR/GBP, which had been buoyed above its key 10-dma in recent sessions managed to break below (though has nudged back toward this line in Europe, 10-dma currently at Gbp0.9179). Risk was given a minor boost in Asia on the back of E-minis which allowed cable to edge to $1.2739 but momentum quickly faded and rate eased back toward the $1.2700 area. Into Europe and rate touched a low of $1.2693, recovered to $1.2714 before pressing down to $1.2691 as early Europe again showed USD demand interest. Focus today on Chancellor Sunak, due to announce new job measures, after the current furlough scheme ends. BOE Bailey speaks speaks at 1500BST and will be watched for any further comment on negative rates. CBI Retail Sales data due at 1100BST.
Support $1.2676/73 ahead of $1.2650/40. Resistance $1.2740/50.
MNI Techs: GBPUSD maintains a bearish outlook. This week's move lower marks an extension of the current bearish run and has confirmed a clear break of support at 1.2763, Sep 11 low. Prices have also breached the 61.8% retracement of the Jun 29 - Sep 1 rally at 1.2722. This reinforces bearish conditions and opens 1.2644, Jul 22 low. Key resistance is at 1.3007, Sep 16 high. Initial resistance resides at 1.2867, Sep 22 high.