Bears take a breather on higher EU stocks

Cable caught bid on higher European stocks on Thursday and put bears on hold after falling 0.8% previous day.
Near-term action is weighed by fresh risk aversion and negative daily studies with consolidation expected to precede push towards key supports at 1.2356 (Fibo 61.8% 1.2074/1.2813) and 1.2335 (22 June low).
Falling 10DMA (1.2486) marks pivotal resistance which needs to cap to maintain bearish bias.
Markets turn focus towards next week’s resumption of UK/EU trade negotiations which may provide stronger direction signal.

Res: 1.2463; 1.2464; 1.2486; 1.2530
Sup: 1.2403; 1.2356; 1.2335; 1.2300