Cable eases from new recovery high at 1.2925, posted after four-day rally which accelerated on Tuesday on strong UK data.
Recovery was capped by falling 20SMA, with barrier reinforced by Fibo 38.2% of 1.3362/1.2661 descend.
Profit-taking on overbought conditions could push the price further down before fresh attempts higher.
Solid supports at 1.2800 zone (daily Tenkan-sen / Fibo 38.2% of 1.2661/1.2925 upleg) are expected to contain extended dips and keep near-term bullish bias in play.
Strong bullish signal could be expected on close above 20SMA, which would open way towards psychological 1.30 barrier.
On the other side, overall picture remains bearish and increased downside risk could be anticipated on loss of 1.2800 support zone.
With no data from UK scheduled today, focus turns towards US housing reports and key event – FOMC minutes.
Res: 1.2908, 1.2929, 1.2986, 1.3000
Sup: 1.2827, 1.2800, 1.2780, 1.2762
