Cable regained traction after Friday’s drop and close in red, as bulls faced strong headwinds on approach to key 1.40 resistance zone.
Fresh recovery in early Monday’s trading keeps in play hopes for renewed attempt at 1.40 pivot, as larger uptrend from 1.3571 (July 20 low) remains intact after shallow pullback.
Daily moving averages (10/20/30) in bullish setup and rising positive momentum support the action, with today’s daily cloud twist attracting bulls.
On the other side, Friday’s drop and close below 1.3910 (broken Fibo 50% of 1.4249/1.3571) generated initial negative signal, with stochastic reversing from overbought territory and weighing on near-term action.
Extended consolidation within 1.3880/1.4000 range is seen as likely near-term scenario, as traders focus on this week’s key event – BoE monetary policy meeting on Thursday.
Look for direction signals on clear break of either 1.3900 support or 1.4000 resistance.
Res: 1.3960. 1.3990. 1.4000. 1.4089.
Sup: 1.3885. 1.3830. 1.3816. 1.3787.
