Cable holds within tight consolidation just above daily cloud top (1.3012) following steep fall in past two days, when the pair registered 1.24% fall, with yesterday’s fall marking the biggest one-day loss in Oct. Bears are taking a breather ahead of strong support zone between 1.3012 and 1.2990 (daily cloud top/Fibo 76.4% of 1.2921/1.3257/55SMA), before continuing lower. Daily 5/10/20SMA’s are turning south and momentum entering negative territory, supporting bearish scenario, which needs confirmation on close below psychological/Fibo 1.30 support. Negative sentiment firmed after EU/UK summit over stalled Brexit talks failed to reach a deal, as Irish border remains main obstacle. Recent weak UK economic data add to negative outlook. Eventual break below pivotal 1.30 zone would open way towards key support at 1.2922 (03/04 Oct higher base). Meanwhile, the pair may hold in extended consolidation, with stronger upticks on profit-taking to be capped by a cluster of converged daily MA’s at 1.3090 zone.
Res: 1.3038, 1.3050, 1.3090, 1.3129
Sup: 1.3012, 1.3000, 1.2990, 1.2933
