Cable holds in a narrow consolidation above 1.3192 low posted on Tuesday’s fall and remains at the back foot, as near-term focus turned lower after repeated failure under 20SMA and subsequent bearish acceleration.
Break and close below 10SMA on Tuesday weakened near-term structure as dovish tone from BoE MPC’s new member Haskel on Tuesday, additionally pressured pound. Additional negative signal comes from Tuesday’s bearish engulfing after strong offers at 1.33 zone capped recovery from 1.3101.
Break below pivots at 1.3192 (Tuesday’s low) and 1.3183 (Fibo 61.8% of 1.3101/1.3315) would spark extension of weakness from 1.33 zone and also signal an end of recovery phase from 1.3101 (21 June low). Broken 10SMA (1.3233) marks initial barrier which is expected to cap and maintain fresh bearish bias.
Lift above 10SMA would sideline immediate downside risk, but clear break above 20SMA (1.3301) is needed to revive bulls and shift focus higher.
Res: 1.3233, 1.3292, 1.3301, 1.3325
Sup: 1.3192, 1.3183, 1.3152, 1.3101
