Cable is consolidating within narrow range on Monday, following two-day recovery rally from last week’s low at 1.2661 (the lowest since late June 2017).
Larger downtrend from 1.4376 (17 Apr peak) is taking a breather (signaled by last week’s long-legged Doji), but overall picture remains bearish and favors further downside.
Bearish setup of daily MA’s and negative momentum studies support the notion.
Falling 10SMA (1.2779) marks key barrier which is expected to limit recovery, while sustained break here would signal extended consolidation and open way towards next strong barrier at 1.2857 (Fibo 38.2% of 1.3173/1.2661 bear-leg).
Res: 1.2779, 1.2810, 1.2857, 1.2917
Sup: 1.2723, 1.2697, 1.2685, 1.2661
