Sterling Retains Soft Feel Ahead of NFP

Cable extended its corrective pullback, away from Tuesday's high of $1.3482, to $1.3243 into Thursday's 1600BST fix. Rate managed to recover through the NY afternoon, settling around $1.3280 into the close. Early sell pressure in Asia saw rate touch a low of $1.3261 before buyers emerged which edged it to $1.3296 but failed to find the momentum to take it through $1.3300. Rate drifted off to the $1.3270 area, with mild selling in early Europe taking it back to $1.3267. Position adjustment noted ahead of today's NFP, as well as into the long US weekend. Brexit comments basically ignored though attention next week as talks resume. The move lower in cable Thursday, with EUR/USD enjoying some buoyancy, allowed EUR/GBP to edge away from the base of its 1.0% 10-dma envelope, though so far holds shy of its 10-dma (current Gbp0.8940). Break here would place further downside pressure on the pound. Cable support $1.3260 ahead of $1.3240, a break to open a deeper move toward $1.3220/15. Resistance seen into $1.3300 ahead of $1.3335/45.
MNI Techs: GBPUSD bull trend remains intact however a correction has unfolded this week. Last week's break of 1.3267, Aug 19 high, confirmed a resumption of the uptrend that has been in place since March and has opened major resistance at 1.3514, Dec 13, 2019 high. A concern for bulls is Tuesday's weak close and a bearish candle pattern, a "shooting star". A sharper sell-off would signal the start of a deeper correction and expose 1.3054, Aug 24 low.