Cable jumped from a nine-week low in European trading on Monday, driven by 30% rise in share of Morrisons, after one of the largest UK grocers rejected takeover, with weaker dollar after a strong rally last week, adding to pound’s strength.
Profit-taking after last week’s 2.15% drop also contributed to today’s action, which is seen as positioning for a fresh push lower, as overall technical picture on the daily chart is bearish.
Daily indicators turned north deeply in the negative territory and support the bounce, which faces resistance from thickening daily cloud (1.3917/1.3960) ahead of broken psychological 1.40 barrier, where rebound should stall to keep fresh bears in play.
Res: 1.3890, 1.3917, 1.3960, 1.4000.
Sup: 1.3806, 1.3786, 1.3715, 1.3693.
