Cable is pressuring initial support at 1.3047 (18 May former high) in early Monday’s trading, following repeated failure at 1.3113 (Friday’s high / near Fibo 38.2% retracement of 1.5016/1.1930 descend) which so far capped the rally.
Further easing on profit-taking after strong rally last week and overbought conditions on daily chart could be anticipated.
Extension below former highs at 1.3047/30 should ideally find support at psychological 1.3000 support (also Fibo 38.2% of 1.2811/1.3113) and 1.2962 (daily Tenkan-sen), before bulls resume.
Bullish technical studies and sentiment on overall weak US dollar keep the pair supported, with clear break above 1.3113 needed to confirm bullish continuation towards 1.3445 (Sep 2016 high).
UK inflation (due on Tuesday) and Retail Sales (due on Thursday) will be closely watched for fresh signals.
Stronger bearish signals could be expected on extension below 1.2930 (Friday’s low / Fibo 61.8% of last week’s 1.2811/1.3113 rally).
Res: 1.3113; 1.3164; 1.3200; 1.3248
Sup: 1.3047; 1.3030; 1.3000; 1.2962
