Cable stands at the front foot on Monday and probes through thin daily cloud (1.3195/1.3227) following bullish close on Friday, when bullish daily candle with long tail was left, signaling strong downside rejection.
Upside attempts today were so far capped by cloud top (1.3228) with falling 20SMA (1.3245) reinforcing barrier.
Sterling received support from cautious optimism over Brexit talks but mixed technical studies on daily chart show no clear direction signal while daily cloud top / 20SMA limit upside action.
Sustained break higher would trigger stronger recovery of 1.3337/1.3087 downleg.
Solid supports lay at 1.3182/68 (4-hr cloud base / session low) and should protect the downside to keep in play near-term bulls from 1.3087 (Friday’s low).
Sustained break below the latter would shift near-term focus lower.
Res: 1.3215, 1.3228, 1.3245, 1.3286
Sup: 1.3182, 1.3168, 1.3131, 1.3087
