Near-term action is in red but so far with limited weakness
Cable extended pullback on Tuesday after last week’s strong rally repeatedly capped by weekly cloud base, but weakness was tempered by better than expected data.
UK Q4 current account deficit narrowed from the previous three-month period and also came below forecasts, reducing pressure on pound from month / Q1 end strong dollar demand.
Fresh bearish extension was so far contained by Fibo 23.6% of 1.1409/1.2485 support at 1.2231, with near-term price action managing to stay above cracked 20DMA (1.2304).
Repeated daily close above 20DMA would sideline immediate downside risk and keep the pair in extended consolidation.
The notion could be also supported by mixed daily studies (flat momentum / stochastic / RSI) and MA’s in mixed setup.
Res: 1.2408; 1.2485; 1.2516; 1.2624
Sup: 1.2304; 1.2287; 1.2231; 1.2200