Cable dipped to daily low at 1.2711 in US trading on Tuesday after attempts through 55SMA (1.2782) in early European session resulted in posting new 2019 high 1.2796, but gains were short-lived.
Three-day recovery rally faced strong headwinds at 1.2780 zone (50% retracement of 1.3174/1.2397 / 55SMA) which resisted attacks on 31 Dec and 7/8 Jan.
Subsequent easing approaches converged 10/30 SMA’s (1.2686) and threatens of further weakening if support gives way and pullback extends below pivotal support at 1.2645 (20SMA / Fibo 38.2% of 1.2397/1.2796 recovery leg).
Res: 1.2782; 1.2796; 1.2814; 1.2850
Sup: 1.2686; 1.2645; 1.2597; 1.2550
