Cable attempts to recover ground and moved higher in early European trading on Tuesday, after strong upside rejection on Monday and subsequent weakness that was contained by key near-term support at 1.2695 (30 Oct low).
Extended consolidation could be expected while 1.2695 support (which guards another pivot at 1.2661, 2018 low) holds, but upside attempts are expected to be limited and ideally capped by falling 10SMA (1.2788).
Overall structure is bearish and favors eventual probe through 1.2695/61 pivots, with firm break lower to generate strong bearish signal for continuation of larger downtrend from 1.4376 (2018 high) and expose next supports at 1.2500 zone. Only break and close above 10SMA would sideline immediate downside risk and likely trigger stronger short squeeze.
Res: 1.2788, 1.2824, 1.2850, 1.2882
Sup: 1.2787, 1.2695, 1.2661, 1.2600
