Cable is consolidating above 1.2800 handle on Monday, following Friday’s strong fall. Strong bearish acceleration was triggered after thick weekly cloud repeatedly capped bull-leg from 1.2365. Dip found footstep at 1.2775 and managed to close above 1.2786 pivot (Fibo 38.2% of 1.2356/1.3047 upleg), sidelining immediate downside risk.
However, Friday’s long bearish candle continues to weigh, with daily studies losing traction and seeing risk of further easing.
Current action could be seen as positioning for fresh easing with extended upticks seen on oversold slow stochastic on daily chart, expected to stay capped under converged 20/10 SMA’s (1.2926/35 respectively). Bearish continuation requires close below Fibo 1.2786 support to open way for extension towards 55SMA (1.2694) and daily cloud top at 1.2656.
Conversely, sustained break above 20/10SMA’s would signal an end of corrective phase from 1.3047 (18 May peak).
Res: 1.2866, 1.2895, 1.2911, 1.2935
Sup: 1.2786, 1.2775, 1.2694, 1.2656
