Cable is holding within a narrow consolidation in European trading on Wednesday, following Tuesday’s 0.64% drop, which generated an initial signal of an end of a multi-day directionless mode.
Fresh weakness touched strong supports at 1.2170 zone (50% retracement of 1.1933/1.2406 / lows of June 22/23), but so far lacking strength for a clear break, which would confirm bearish signal and shift near-term focus lower.
Daily technical picture is bearish with strong negative momentum and MA’s in bearish setup, keeping near-term bias with bears, as sterling is weighed by month-end dollar buying.
However, risk of extended range-trading is expected to persist as long as the price action stays above 1.2170 zone pivots, but the downside will remain vulnerable while daily Kijun-sen (1.2300) caps.
Res: 1.2213; 1.2235; 1.2260; 1.2300
Sup: 1.2170; 1.2114; 1.2045; 1.2000
