Cable eases after falling daily cloud capped rally
Cable is holding in red in early Friday trading, following a double rejection under the base of falling daily cloud.
Thursday’s bearish close and fresh extension lower warn that recent bulls, inspired by political news after Rishi Sunak replaced Liz Truss as a Prime Minister, might be running out of steam.
Overbought conditions on daily chart and fading bullish momentum signal easing, with pullback facing initial supports at 1.1490 zone (former tops of Oct 4,5) and falling 55DMA (1.1433), with daily Tenkan-sen (1.1353) to hold extended dips and keep larger bulls intact.
Only break of lower pivot at 1.1150 (Fibo 38.2% of 1.0348/1.1645) would weaken near-term structure and risk deeper drop.
Res: 1.1594; 1.1645; 1.1732; 1.1752
Sup: 1.1490; 1.1433; 1.1353; 1.1271