Cable ticked higher in early European trading on Monday, following gap-lower weekly opening and probe below significant supports at 1.30/1.2993 (psychological/200SMA/Fibo 61.8% of 1.2772/1.3349).
Uncertainty ahead of last parliamentary vote on PM May’s Brexit plan keeps sterling under pressure, which increased on comments from top UK officials over the weekend that Brexit could be reversed if the deal will be rejected on Tuesday’s vote.
The pair was in red for the seven straight sessions, ending previous week with 1.8% loss (the biggest weekly fall since late Oct).
Bears may show stronger hesitation at 200SMA support after probe below and dip to three-week low (1.2960) found footstep just ahead of top of thick daily cloud / 55SMA (1.2944), as daily stochastic is oversold.
Rising bearish momentum keeps the downside in focus, with limited upticks seen as positioning ahead of final push through 1.2993/44 pivots.
This would expose 100SMA (1.2885) and risk acceleration towards 1.2772 (14 Feb trough).
Broken 30/20SMA’s (1.3043/64) offer solid resistances which should cap upticks and keep bears intact.
Res: 1.3018, 1.3043, 1.3064, 1.3088
Sup: 1.2960, 1.2944, 1.2909, 1.2885
