Cable remains within narrow range and holds in directionless mode for two weeks, lacking stronger direction signal. Thursday’s recovery attempts probed above 200SMA (1.3556) which marks pivotal barrier, but failed to close above and generate bullish signal. Today’s action is capped by sideways moving 10SMA (1.3526) but neutral momentum and RSI keep today’s action within tight range. The pair looks for a catalyst which could be provided by major news, to eventually break out of two-week congestion and signal fresh direction. Bearish scenario requires firm break below range floor (1.3450) and nearby Fibo support at 1.3442 (38.2% of 1.1930/1.4376) to signal continuation of downtrend from 1.4376 (post-Brexit recovery peak). Conversely lift and close above 200SMA would generate initial bullish signal, but confirmation of reversal needs sustained break above range floor (1.3617) and falling 20SMA (1.3642).
Res: 1.3526, 1.3556, 1.3570, 1.3617
Sup: 1.3500, 1.3474, 1.3450, 1.3442
