• Off 0.05% in a tight but busy 1.2295-1.2309 range on FX Matching

• UK inflation expectations rose to 3.7% in Dec from 3.3% in Oct Citi/YouGov

• The market must be convinced the Gov't 'iron grip' on spending will hold

• Sterling could be vulnerable after a bad week into the volatile US jobs data

• Charts - daily momentum studies ease, 21-day Bollinger bands head lower

• 5, 10 & 21-DMAs slide - weeklies remain bearish - a strong negative setup

• The London 1.2239 low, then the 1.2038 October 2023 low are initial supports

• Wednesday's 1.2493 top, then this week's 1.2575 high are first resistance
Andy

(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)