Limited recovery after long-legged Doji awaits fresh signals from US GDP data

On Apr 26, 2019

Cable holds slight positive tone in early Friday’s trading after larger bears showed indecision, as Thursday’s action ended in long-legged Doji.
Recovery attempts stay for now capped by broken Fibo 76.4% support at 1.2916 (also Thursday’s high), signaling consolidation ahead of today’s key event – release of US GDP data.
Conflicting indicators (weak momentum and north-heading stochastic, attempting to reverse from oversold territory) add to the sentiment.
Overall picture remains negative, following break of key 200SMA support and pair being on track for the second straight bearish weekly close.
Limited recovery would keep bears fully in play for extension of larger downtrend towards 14 Feb low at 1.2772.
Weaker than expected US Q1 GDP would trigger further profit-taking and generate initial reversal signal, which would require confirmation on return above converged 100/200SMA (1.2962) and extension towards broken psychological 1.30 support and daily cloud base (1.3024).

Res: 1.2916; 1.2925; 1.2962; 1.2978
Sup: 1.2882; 1.2865; 1.2832; 1.2800