Cable eases from new three-month high (1.2819 on Thursday on softened risk mode after Fed signaled bleak outlook for the US economy in post-pandemic recovery. Double Doji on Tuesday and Wednesday with the latter having long upper shadow, generated initial signal that bulls might be running out of steam, as thick weekly cloud produces strong headwinds. Fresh easing cracked key support at 1.2677 (200DMA) and today’s close will be watched for a signal. Near-term structure would weaken and signal pullback if the action closes below 200DMA, while near-term bias is expected to stay with bulls on today’s close above 200DMA (that will be the fourth consecutive close above the indicator). Bullish scenario requires firm break above cracked Fibo barrier at 1.2777 (76.4% of 1.3199/1.1409) to signal continuation and unmask psychological 1.30 barrier. On the other side, scenario of pullback remains in play as daily stochastic/RSI reversed from overbought territory and head south. Extended dips are expected to find ground above 100DMA (1.2542) to keep larger bulls alive.
Res: 1.2753, 1.2777, 1.2813, 1.2849
Sup: 1.2677, 1.2650, 1.2611, 1.2542
