Extended pullback to mark a healthy correction while above 20DMA
Cable accelerates lower in thin volumes on Monday, extending pullback from 1.2525 top (Apr 4) into fourth straight day.
Drop below initial support provided by 10DMA (1.2395) and extension briefly below 1.2354 (Fibo 23.6% of 1.1802/1.2525) generates initial reversal signal, though close below these levels is needed to confirm signal.
Daily RSI and stochastic are in steep descend, along with south-heading 14-d momentum, which is still in the positive territory, supporting fresh weakness.
Next solid support lays at 1.2300 (rising 20DMA) and if dips find ground here, current pullback will be marked as healthy correction, which should provide better levels to join bullish market ahead of fresh push higher.
Sustained break of 1.2525 peak to unmask next targets at 1.2659/66 (May 2022 double-top).
Conversely, loss of 20DMA support would weaken near-term structure and risk drop below pivotal support at 1.2249 (Fibo 38.2% of 1.1802/1.2525).
Res: 1.2395; 1.2447; 1.2525; 1.2600
Sup: 1.2300; 1.2274; 1.2249; 1.2174