Cable ticked higher in early European trading on Tuesday and probes above key barrier provided by falling 10SMA (1.2641), which limits upside attempts since 13 Nov and maintains bearish short-term bias.
Fresh near-term bullish sentiment is supported by expectations that Fed would dovish on Wednesday’s policy meeting, amid concerns about global growth slowdown, as well as strong criticism from President Trump about the pace of rate hikes.
Close above 10SMA would generate initial bullish signal, while extension and close above 20SMA would provide relief.
On the other side, growing bearish momentum on daily chart warns that recovery may stall under next key points at 1.2686 (13 Dec high, where recovery from new 20-month low at 1.2476 stalled) and 1.2711 (falling 20SMA).
Return and close below 10SMA would weaken near-term tone and keep overall bears intact.
Res: 1.2662, 1.2686, 1.2711, 1.2782
Sup: 1.2609, 1.2564, 1.2528, 1.2476
