Cable dipped nearly 200 pips on Wednesday after week-long advance stalled at 200DMA barrier (1.2648) on Tuesday. Pullback accelerated on profit-taking and fresh strength of dollar on renewed safe-haven demand as US equities fell on downbeat US data. The pair is on track for daily close in red after five days of rally and forming bearish outside day, with signal of deeper pullback expected on close below cracked former pivotal barriers at 1.2516/1.2485 (Fibo 61.8% of 1.3199/1.1409 / former high of 27 Mar). Fresh weakness also returned below the base of weekly cloud (1.2521) signaling false break into cloud. Fading bullish momentum and south-heading stochastic on daily chart support negative near-term scenario, as both indicators also formed bearish divergence. Bears so far hold above 10DMA (1.2411), with break here to weaken the structure and risk extension towards 1.2355 (Fibo 23.6% of entire 1.1409/1.2647 recovery. Only close above 1.2516 Fibo level would sideline immediate downside risk.
Res: 1.2516; 1.2552; 1.2566; 1.2630
Sup: 1.2436; 1.2411; 1.2355; 1.2326
