Cable bounced to 1.2750 zone on Wednesday after sharp fall on Tuesday that resulted in spike to 1.2658 low (the lowest since mid-June 2017) after UK PM May suffered defeat at the beginning of five-day parliamentary debate over Brexit plan. Sterling stands at the back foot, despite Tuesday’s long-legged Doji which signaled strong indecision, as traders await more news about Brexit, pound’s key driver. Dip on Tuesday probed below key supports at 1.2695 (30 Oct low) and 1.2661 (2018 low), although without sustained break, but generated negative signal. Bearish daily techs confirm that the pair remains in a downtrend and pressuring strongly key supports, but looking for firmer signals and focusing 11 Dec parliament’s vote about Brexit agreement. Meanwhile, choppy trading could be likely near-term scenario, with falling 10SMA (1.2778) marking initial barrier, while stronger bullish signal could be expected on sustained break above falling 20SMA (1.2832). On the other side, eventual firm break below 1.2695/61 pivots would be strong bearish signal for continuation of multi-month downtrend from 1.4376 (2018 high).
Res: 1.2750, 1.2779, 1.2832, 1.2850
Sup: 1.2695, 1.2671, 1.2658, 1.2600
