Cross price dips towards range floor on stronger pound
The pound advanced in European trading on Wednesday, sending the cross price lower after the upside attempts in past few sessions were repeatedly capped by falling 20DMA (the price action holds below 20DMA since 10 Oct).
Fresh weakness pressures the lower boundary of 0.8521/0.8604 consolidation, with near-term action remaining in directionless mode.
Bearish daily techs maintain negative tone for renewed attack at 0.8521 pivot (18 Nov, the lowest since early May) break of which would lead towards full retracement of 0.8471/0.9324 rally ( the lowest and the highest levels in 2019).
However, the cross may hold in extended range, due to quiet holiday trading on Thursday and awaiting more signals from UK election.
Only firm break above 30DMA (currently at 0.8596) and congestion top (0.8604) would ease downside pressure and allow for corrective attempts.
Res: 0.8581; 0.8596; 0.8604; 0.8657
Sup: 0.8531; 0.8521; 0.8489; 0.8471