GBPUSD – limited recovery warns of prolonged sideways mode

Cable ticked higher and hit new highest since Feb 2 in early Monday but was so far unable to sustain gains, keeping the price within congestion which extends into fourth straight day.

A double Doji (Fri/Thu) signal indecision as daily studies are mixed and keep near-term price action between 200DMA (1.2564) and falling 10DMA (1.2638).

Break of either side to generate initial direction signal, although more work at the upside will be required. Breach of sideways-moving and converged daily Tenkan-Kijun-sen (1.2645/51 respectively) to revive bulls, with lift and close above daily cloud top (1.2691) to confirm continuation of recovery leg from 1.2518 (Feb 5 low).

Conversely, break below 200DMA support to weaken near-term structure for renewed attack at 1.2525 pivot (Fibo 38.2% of 1.2037/1.2827 rally), violation of which to open way for deeper correction.

Res: 1.2651; 1.2670; 1.2691; 1.2755
Sup: 1.2599; 1.2566; 1.2525; 1.2481