Cable holds in extended consolidation ahead of UK data
Cable is holding within tight range in early Tuesday’s trading after recovery attempt on Monday lost traction and awaiting UK data for fresh signals.
Rising 100DMA (1.2893) continues to hold, but upside was so far limited by broken Fibo 38.2% support (1.2919 reinforced by falling 5DMA).
Overall picture is bearish and sentiment is weak on UK/EU tensions over post-Brexit trade negotiations and firm dollar.
Technical studies on daily chart maintain strong bearish momentum and favor further weakness, however, deeply oversold stochastic suggests further consolidation.
Daily close above 1.2919 would generate initial bullish signal, but recovery would need firm break above 1.30 pivot to signal reversal.
On the downside, final break below 100DMA would spark fresh bearish acceleration and unmask targets at 1.2822 (higher base) and 1.2768 (8 Nov low).
Forecasts for UK Q4 GDP are below previous reading and weak figures would add to negative tone.
Markets also focus on Fed Powell’s testimony later today, which would provide fresh signals.
Res: 1.2919; 1.2959; 1.2975; 1.3000
Sup: 1.2893; 1.2871; 1.2822; 1.2768