Cable remains in red in early European session on Thursday, following previous day’s strong upside rejection and subsequent fall that resulted in bearish daily close after two consecutive Dojis. Fresh weakness broke below three-day congestion floor and rising 30SMA (1.3152), clear break of which would signal further weakness. Technical studies are still mixed as bullish momentum conflicts south-heading stochastic and MA’s (10/20/30) turning to bearish setup. Close below 30SMA would expose rising 55SMA (1.3068) and break here would risk extension towards key supports at 1.2983/81 (bull-channel support line/200SMA). The upside was capped in past few sessions by 10SMA which turns south (currently at 1.3201) and only firm break higher would sideline downside risk. Also, thick falling weekly cloud continues to weigh and repeated weekly close below cloud base would be negative signal. UK lawmakers voted more against on eight indicative Brexit options, while PM Theresa May offered to quit if hep Brexit plan was finally passed by the parliament at the third attempt. Very strong uncertainty weighs on pound as it is still unknown when, how or even whether the UK will leave the EU.
Res: 1.3183, 1.3201, 1.3249, 1.3269
Sup: 1.3125, 1.3105, 1.3068, 1.3004
