Cable eases after double upside failure, risks deeper pullback

On Nov 19, 2020

Cable dips to two-day low (1.3205) in early Thursday, deflated by newspaper report that Europe’s leaders are set to demand European Commission to publish plans for no-deal Brexit, as fears of negotiations stall rise.
European leaders aim to prepare people and businesses for the worst scenario which would be another shock for financial markets, already hurt badly by coronavirus pandemic.
EU negotiators are expected to update bloc’s member states on the latest in trade talks in early Friday.
Fresh weakness is developing a negative signal on daily chart, as repeated failure at Fibo barrier at 1.3291 (76.4% of 1.3482/1.2675) warns of double-top and bull-trap.
Fading bullish momentum and south-turned RSI add to negative signals, as fresh bears test pivotal support at 1.3204 (rising 10DMA).
Break here would allow for deeper pullback towards 1.3161 (Fibo 23.6% of 1.2675/1.3311) and 1.3109/06 (12/13 Nov double bottom, reinforced by 20DMA) which guard key supports at 1.3075/68 (daily cloud top / Fibo 38.2%).

Res: 1.3272; 1.3291; 1.3311; 1.3357
Sup: 1.3204; 1.3161; 1.3106; 1.3078