Bears are taking a breather before probe through key 1.2559 support
Cable is holding in narrow consolidation above 31 May low at 1.2559 on Monday, following strong bearish acceleration on Friday, sparked by solid US data.
Consolidation may extend on oversold conditions, but overall picture remains negative as pound remains weighed down by fears of no-deal Brexit.
Weekly bearish engulfing adds to bearish outlook for final attack at key 1.2559 support, break of which would open way for extension towards 2019 spike low at 1.2397, posted on 3 Jan.
Thick 4-hr cloud (1.2660/1.2702, with cloud base being reinforced by converged 10/20SMA’s) should limit upticks and keep bears intact.
Res: 1.2601; 1.2626; 1.2660; 1.2682
Sup: 1.2571; 1.2559; 1.2508; 1.2476