Cable is holding steady in early Europe, trading around 1.2870 after hitting session low at 1.2853 after opening of Asia on Monday, underpinned by latest polls that show Conservative Party lead up.
However, Monday’s action was so far capped by top of thick hourly cloud, with strong bearish signals emerging on daily chart and seeing risk of deeper pullback.
Recovery rally from 1.2770 base stalled at 1.2900 zone, with double long-legged Dojis on Thu/Fri, signaling that near-term bulls may be running out of steam.
Plethora of strong resistances at 1.2900 zone, provided by daily MA’s (10/20/30) and Tenkan-sen/Kijun-sen lines, limited upside attempts and signal rising downside pressure on bear crosses that were formed.
Break below session low (1.2853) and extension through last Thursday’s low at 1.2829 (also Fibo 61.8% of 1.2768/1.2920 recovery rally) would further weaken near-term tone and risk return to 1.2770 higher base and breakpoint.
Falling 10SMA so far caps and maintains descend from double upside rejection at 1.2915/20.
Only sustained break above these barriers would neutralize bearish threats and shift near-term bias higher for renewed attacks at psychological 1.3000 barrier.
Res: 1.2883, 1.2903, 1.2920, 1.2946
Sup: 1.2853, 1.2829, 1.2800, 1.2768
