Cable dipped below 1.33 handle in early hours of US trading after bullish acceleration earlier today faced strong headwinds from falling 10SMA (1.3351). Stronger dollar on upbeat US consumer spending which registered biggest gain in past five months, added to renewed pressure on sterling. As mentioned in the morning’s report, bearish setup of daily techs favors fresh weakness and sees 10SMA as ideal cap. Daily close below 10 SMA would be initial negative signal which needs extension below broken 5SMA (1.3293) to re-expose key support at 1.3205 (top of weekly cloud / 29 May low). Alternatively, close above 10SMA would sideline downside risk and signal stronger recovery.
Res: 1.3351; 1.3410; 1.3441; 1.3459
Sup: 1.3293; 1.3277; 1.3241; 1.3205
