Cable eased from the session high at 1.3213 as probe through pivotal barrier at 1.3208 (Fibo 61.8% of 1.3362/1.2957 failed at the initial attempt.
Brexit talks are to resume with UK PM May retaking control of Brexit which could supportive factor for sterling.
Scope is seen for 1.32+ gains in renewed attempt which could result in extension towards 1.3267/80 (Fibo 76.4% / falling 55SMA) and possible attack at 1.3300 (base of falling thick daily cloud) but corrective dips may precede fresh advance as momentum is weak.
Bull-cross of 5/10SMA’s (1.3140) underpins and should ideally contain dips to keep bulls intact.
Conversely, close below 10SMA would generate bearish signal and risk further easing.
Res: 1.3213, 1.3267, 1.3280, 1.3300
Sup: 1.3174, 1.3140, 1.3112, 1.3071
