Bears faced strong headwinds at pivotal 1.2450 zone; UK/EU talks in focus for fresh signals
Cable bounced after attempts to extend pullback from 1.2813 peak faced strong headwinds at 1.2450 zone (rising 20DMA / 50% retracement of 1.2074/1.2813 upleg), reinforced by nearby top of daily cloud (1.2430).
Fall in equity prices and stronger dollar on exodus from riskier assets on concerns over second wave of coronavirus, weigh on pound as traders await fresh news from today’s video-conference between UK OM Boris Johnson and EU leaders.
Fading bullish momentum on daily chart and bearish close last week (after three weeks in green) add to negative signals, however, bears may struggle further to clear important supports and hold in extended consolidation.
Today’s close below 100DMA (1.2531) would signal that near-term bears remain fully in play and keep focus at 1.2550/30 pivots.
Conversely, close above 100DMA would weaken bears, but the outlook is expected to remain negative as long as the price stays below 200DMA (1.2679).
Res: 1.2531; 1.2548; 1.2624; 1.2679
Sup: 1.2443; 1.2430; 1.2398; 1.2356