Cable returns to red after short-lived positive impact from Fed’s rate cut
Cable returned to red and fell back to last Friday’s low (1.2259 (the lowest since 10 Oct) as strong negative sentiment continues to dominate and Fed’s overnight action that deflated dollar made little impact on pound.
Massive bearish weekly candle (the pair was down 6.1% last week) weighs heavily as Friday’s close below weekly cloud (1.2669/1.2442) and Fibo 76.4% of 1.1958/1.3514 was negative signal.
Bears look for resumption and test of psychological 1.30 level, loss of which would unlock 2019 lows at 1.2200 are and risk retest of critical 1.20 zone.
Oversold daily studies suggest further hesitation ahead of 1.30 pivot, with limited upticks (likely to stay capped by weekly cloud base at 1.2442), to precede fresh weakness.
Res: 1.2425; 1.2442; 1.2500; 1.2552
Sup: 1.2325; 1.2258; 1.2200; 1.2140