Cable moved lower in early Wednesday’s trading and probes again below 200SMA but remains for now within consolidation range (1.3484/1.3592) which extends into fourth straight day.
Steep fall from 1.4376 (2018 high) found footstep at 200SMA which resisted attacks in past three days, as repeated daily closes above 200SMA, keep the support valid.
However, no firmer basing signal has been generated yet, that keeps the downside vulnerable, as clear break below 200SMA would spark fresh extension of pullback from 1.4376 and expose key support at 1.3442 (Fibo 38.2% of 1.1930/1.4376, post-Brexit recovery phase).
Current sideways mode is helped by conflicting signals from daily studies (MA’s are in full bearish setup while slow stochastic emerged from oversold territory and 14-d momentum reversed higher), while falling 10SMA (1.3636) weighs and marks the upper pivot.
Overall sentiment remains negative and was further boosted by recent downbeat UK data which signaled the BoE would likely stay on hold in May and probably hike rates in their August meeting.
Res: 1.3541, 1.3575, 1.3592, 1.3636
Sup: 1.3484, 1.3442, 1.3400, 1.3346
