Bulls continue to struggle at key 1.3800 resistance zone
Cable remains constructive in early European trading on Thursday and holding within thick daily cloud, but long upper shadows on candles of past two days warn of headwinds bulls face.
Also, repeated rejection above 50% retracement of 1.3983/1.3601 (1.3792) downleg signal of formation of bull-trap, that additionally weighs on bulls.
Strong resistances at 1.3800 zone are reinforced by converged 55/30/200DMA’s and repeated failures to clearly break these barriers would add to signals of stall.
Daily MA’s are in mixed setup, momentum is in the negative territory and RSI is neutral, lacking clear direction signal.
Sustained break through 1.3800 zone would generate initial signal of bullish continuation and expose targets at 1.3837/93 (Fibo 61.8% / 76.4% of 1.3983/1.3601).
Conversely, break and close below 10DMA (1.3736) would sideline bulls.
Res: 1.3815; 1.3837; 1.3878; 1.3893
Sup: 1.3763; 1.3747; 1.3736; 1.3707