Cable holds within tight range in the mid-European trading on Friday, signaling further indecision after Thursday’s action ended in long-legged Doji.
The pound was initially supported by upbeat comments from BoE deputy governor Ramsden, but came under pressure after leaked comments from foreign minister Johnson about Brexit collapse.
Recovery leg from 1.3204 low was capped by falling 30SMA on Thursday and Friday’s trading remains below, generating initial signs of recovery stall.
Reversal of slow stochastic from overbought zone and flat RSI support scenario which requires close below 20SMA (1.3390) and today’s close in red to generate reversal signal.
Meanwhile, the pair may hold in extended consolidation between 20 and 30SMA’s, before establishing in fresh direction.
Bullish scenario needs weekly close above 30SMA (1.3454) to signal continuation and expose 200SMA (1.3590).
Res: 1.3454, 1.3480, 1.3520, 1.3590
Sup: 1.3390, 1.3362, 1.3343, 1.3301
