Cable extends recovery despite terrible jobless claims but pivotal barriers stay so far intact
Cable extends Monday’s recovery, fueled by rise in global stocks and fresh risk appetite, to hit session high at 1.2267 (the highest since 13 May) in early European trading on Tuesday.
UK jobs data showed increase in employment and lower unemployment rate in March that partially offset terrible jobless claims (+856K, the highest since 1996).
Recovery could be attracted by thin daily cloud (1.2304/27) but faces strong barriers at 1.2268 (falling 10DMA) and 1.2291 (Fibo 38.2% of 1.2642/1.2074).
Break here and through daily cloud is required to spark stronger correction and sideline prevailing idea of formation of dead cat bounce pattern.
Extended upticks need to clear converged 20/55DMA’s (1.2350) to confirm reversal.
Daily studies maintain bearish momentum, with converged 100/200DMA’s attempting to form death-cross and add to bearish pressure.
Res: 1.2269; 1.2291; 1.2304; 1.2327
Sup: 1.2208; 1.2174; 1.2159; 1.2100