Cable eased from new one-month high at 1.2766 in early European trading on Monday after bulls faced strong headwinds from key barrier at 1.2763 (Fibo 38.2% of 1.3179/1.2505 / 7 June high).
Strong four-day advance from 1.2505 low is taking a breather, as bulls remain supported by expectations of Fed rate cut by 0.5% and may position for fresh advance.
Overbought stochastic and weakening momentum on daily chart, support scenario, with dips expected to ideally hold above 30SMA (1.2688) and keep bulls in play for renewed probe through 1.2763 pivot.
Firm break here would open way towards falling 55SMA / 50% retracement (1.2837/42).
Converged 10/20SMA’s (1.2657/62) mark pivotal support, loss of which would sideline bulls and shift near-term focus lower.
Res: 1.2763, 1.2810, 1.2842, 1.2900
Sup: 1.2723, 1.2688, 1.2672, 1.2657
