Cable ticked above 1.28 handle on fresh risk appetite and retraced the largest part of last Thu/Fri fall on short-covering.
Bounce confirms strong support at 1.2725 zone, but the pair remains within 1.2850/1.2725 congestion which extends into fifth straight day.
Daily techs remain weak and maintain bearish momentum, with formation of 20/30SMA’s bear-cross adding pressure.
Extension of advance is expected to face strong headwinds from key near-term barrier at 1.2850 (congestion top / Fibo 61.8% of 1.2927/1.2725 bear-leg) and failure here would signal extension of directionless near-term mode, with risk to shift lower again.
Break below 1.2725 base would expose key supports at 1.2695 (30 Oct low) and 2018 low at 1.2661(posted on 15 Aug), violation of which would signal continuation of larger downtrend from 2018 high at 1.4376 (17 Apr).
Sustained break above 1.2850 would provide relief and expose pivotal barriers at 1.2875 (20/30SMA) and 1.2895 (Fibo 38.2% of 1.3174/1.2722), violation of which would sideline bears.
Res: 1.2824, 1.2850, 1.2875, 1.2895
Sup: 1.2767, 1.2725, 1.2695, 1.2661
