Cable extended lower in early European trading on Wednesday but remains within the range of past two days which left two Doji candles, signaling indecision.
Weekly cloud continues to cap near-term action, but bears struggle to regain control.
Studies on 4-hr chart are weak and favor fresh weakness, but mixed signal on daily chart (rising momentum / RSI and stochastic turn south / MA’s in mixed configuration) keep the pair within congestion for now.
It is unclear at the moment whether bullish continuation or reversal pattern is forming on daily chart, with violation of pivotal points (1.2231 at the downside and 1.2485 at the upside) to give clearer signals.
UK Manufacturing PMI is one of key releases for sterling today Mar 47.0 f/c vs 51.7 prev), followed by US ADP private sector jobs data Manufacturing PMI, later today.
Res: 1.2419, 1.2446, 1.2485, 1.2516
Sup: 1.2281, 1.2231, 1.2200, 1.2131
