Cable is consolidating above new 2022 low (1.3009) the lowest since Nov 2020, as bears face headwinds from psychological 1.30 support and oversold daily studies.
Bounce is likely to correct the latest fall, with RSI on daily chart emerging from oversold territory and supporting the notion, but MA\s in full bearish configuration and strong bearish momentum suggest that recovery might be limited and fresh push lower can explore levels below 1.30.
Last week’s close below 200WMA (1.3118) generated significant bearish signal and added to negative outlook.
The action stays below initial barrier at 1.3118 (200WMA) and still away from pivotal levels at 1.3158/86 (Fibo 23.6% of 1.3642/1.3009 / falling 10 DMA), violation of which may sideline bears and allow for stronger correctio towards the upper trigger at 1.3251 (Fibo 38.2% of 1.3642/1.3009).
Res: 1.3118; 1.3158; 1.3186; 1.3251
Sup: 1.3000; 1.2977; 1.2900; 1.2863
