Cable started the week in red and erased the most of Friday’s recovery, pressured by strong risk aversion. The pair was down 0.4% in Asia/early Europe on Monday and slid below cracked 100DMA (1.2949), turning daily MA’s back to full bearish setup. Momentum and RSI turned south, adding to negative stance, as near-term action probed below 1.29 handle and pressuring Friday’s low (1.2876) which guards key support at 1.2849 (20 Feb three-month low) break of which would signal continuation of larger downtrend towards targets at: 1.2768 (8 Nov low), 1.2736 (50% retracement of 1.1958/1.3514) and 1.2690 (200DMA). Daily Tenkan-sen provides initial resistance at 1.2959 after Friday’s recovery attempts dented it but failed to close above, with sustained break higher needed to ease rising bearish pressure.
Res: 1.2919, 1.2959, 1.2987, 1.3000
Sup: 1.2876, 1.2849, 1.2822, 1.2768
