Bulls so far unable to capitalize from strong bullish weekly close
Cable holds within tight range in Europe on Monday, lacking strength for further advance despite last week’s bullish close and marginally above thin weekly cloud, which limited the action of past six weeks.
Near-term action remains above daily Tenkan-sen / Kijun-sen in bullish setup, but flat daily momentum and stochastic in sideways mode, just under overbought zone border line, warn of recovery stall.
Bear-trendline off 1.3012 peak (currently at 1.2967) remains intact and break here would open way for renewed attack at key 1.30 resistance zone.
On the other side, Friday’s low (also 30DMA) marks pivotal support at 1.2879, violation of which would soften near-term tone and risk test of triangle support line (1.2839) and higher base at 1.2820.
Traders look for fresh signals from events surrounding coming UK election on 12 Dec, as polls still show Tory’s strong advance over Labor, with lower bets for a hung parliament after election.
Res: 1.2927; 1.2950; 1.2967; 1.2984
Sup: 1.2900; 1.2879; 1.2839; 1.2820