Fresh rebound needs to clear 1.30 zone to sideline bears
Fresh risk appetite lifts cable in European session on Tuesday, as bears showed signs of stall on Monday’s long-tailed Doji and bear-trap under rising 100DMA.
Recovery cracks barriers at 1.2978/84 (Fibo 38.2% of 1.3177/1.2855 / 20DMA) which guard psychological 1.30 resistance (also daily cloud top and 55 DMA).
Good offers at this zone may limit recovery, as daily cloud is thickening and increasing pressure and momentum remains in negative territory on daily chart.
Caution on break here that would generate initial reversal signal.
Investors await results from US elections and eye BOE and Fed’s policy meetings on Thursday, to get fresh signals.
Res: 1.3000; 1.3025; 1.3054; 1.3079
Sup: 1.2940; 1.2908; 1.2881; 1.2855