Cable bounces from new two-week low (1.2247) in early European trading on Wednesday following previous day’s 1.3% fall, driven by risk aversion.
Falling 30DMA contained Tuesday’s dip, guarding key supports at 1.2174/64 (Fibo 38.2% of 1.1409/1.2647/7 Apr low), with larger uptrend from 1.1409 (20 Mar low) expected to stay intact if recovery extends and leaves higher low at 1.2247.
Daily MA’s are in mixed setup, momentum is flat while stochastic is about to reverse from oversold zone, lacking firmer signal.
Fresh recovery needs break and close above 20DMA (1.2400) for bullish signal, while increased downside risk can be expected on break of 30DMA support that would expose 1.2174/64 pivots.
Res: 1.2355, 1.2400, 1.2455, 1.2500
Sup: 1.2274, 1.2233, 1.2205, 1.2174
