Cable is struggling to sustain break above daily cloud (cloud top lies at 1.2474, reinforced by Tenkan-sen).
Thursday’s rally spiked above 1.2500 handle but was unable to hold gains and daily action was shaped in candle with long upper shadow.
Similar scenario is seen on early Friday’s trading (uptick to 1.2505 and subsequent pullback below daily cloud top).
However, daily studies are bullish and favor fresh upside attempts while the price is holding above strong support at1.2412, where 55/100SMA bull-cross is forming.
Eventual close above daily cloud is needed to attract recent peak at 1.2613 and possible further upside on break. On the other side, close within the cloud would further weaken near-term structure, which is currently in neutral/bearish mode.
Loss of 100SMA support would rish fresh weakness towards key near-term supports at 1.2360/45 (daily Tenkan-sen/cloud base).
Profit taking at the end of the month could also influence the pair.
Res: 1.2474, 1.2505, 1.2522, 1.2557
Sup: 1.2442, 1.2412, 1.2360, 1.2345
