Near-term action remains in a narrow range and looks for fresh direction signals
Cable continues to trade within a narrow range for the sixth consecutive day, with psychological 1.20 level offering solid support and keeping the downside protected for now, while the upside attempts repeatedly failed to register a daily close above 200DMA (1.2056).
Holiday-thinned markets and lack of news, keep the pair in a quiet mode, as mixed daily studies add to directionless near-term mode.
The pair is on track for a monthly close in Doji with long upper shadow, following strong rejection at the base of monthly Ichimoku cloud, which generates an initial signal that three-month recovery rally might be stalling.
Expect initial bullish signal on sustained break above 200DMA, which would look for a confirmation on extension above 20DMA (1.2166).
Alternatively, firm break of temporary base at 1.20 and extension through 1.1947 pivot (Fibo 38.2% of 1.1146/1.2442 upleg) would weaken near-term structure and shift focus lower.
Res: 1.2056; 1.2166; 1.2200; 1.2241
Sup: 1.2000; 1.1947; 1.1831; 1.1794