Cable bounced on Wednesday after retesting 1.3814 (one-week low posted on Tuesday), as traders took some profits from a four-day drop.
Near-term bears face headwinds from strong bids at 1.3800 zones (1.13814 (Today/Tue lows / 1.3791/86 – lows of June 18/21) but the overall picture remains bearish on daily chart.
Limited correction is seen likely before bears re-take control, as negative momentum continues to rise and daily moving averages are in bearish configuration.
Falling 10DMA offers solid resistance at 1.3891, ahead of 100DMA / daily cloud base (1.3950) which should cap upticks and protect 1.40 breakpoint (psychological barrier, reinforced by falling 20DMA / recent recovery spike high).
Bearish scenario sees clear break of supports at 1.38 zone as a trigger for bearish acceleration towards 1.3670 higher base and rising 200DMA (1.3629) in extension.
Res: 1.3891, 1.3939, 1.3950, 1.3986.
Sup: 1.3814, 1.3786, 1.3715, 1.3670.
