Cable edged lower on sub-forecast Uk November earnings which adds to talks about possible rate cuts, although the BoE signals that cuts are still not on the table, with hawkish hold expected on Thursday’s policy meeting.
Near-term structure remains positively aligned while the price stays above 200DMA (1.2491), but break above 10DMA (1.2608) is needed to generate positive signal and shift near-term mode from sideways to bullish.
Positive momentum on daily chart supports the notion, as larger uptrend from 1.2037 (Oct 4 low) is still intact.
Caution on loss of lower pivots at 1.2491 (200DMA) and 1.2467 (Fibo 38.2% of 1.2037/1.2733) which would open way for deeper correction.
Res: 1.2608; 1.2652; 1.2678; 1.2733.
Sup: 1.2502; 1.2491; 1.2467; 1.2428.
