Cable remains in red for the third straight day and retests key 200SMA support (1.3045) on Monday, after downbeat UK construction PMI (Jan 50.6, the lowest in 10 months vs 52.4 f/c), further weakened negative near-term sentiment. South-heading momentum and formation of 5/10SMA add to negative outlook but bears for now face strong headwinds from 200SMA support. Sustained break below 200SMA would generate strong bearish signal for extension of pullback from 1.3217 (25 Jan high) towards 1.2965 (rising 20SMA) and more significant support at 1.2904 (Fibo 38.2% of 1.2397/1.3217/100SMA). Conversely, close above 10SMA (1.3087) would ease immediate bearish pressure, but return and close above 1.3160 (31 Jan lower top) would neutralize and re0focus 1.3217 peak.
Res: 1.3087, 1.3114, 1.3160, 1.3217
Sup: 1.3045, 1.3000, 1.2965, 1.2904
