Bears regain control but near-term action is still directionless
Cable holds in red for the second consecutive day and eases towards initial support at 1.2820 (Fibo 23.6% of 1.2197/1.3012 upleg) in early Wednesday’s trading, deflated by stronger dollar on fresh risk mode on trade deal hopes.
The price action of past few days remains directionless (momentum / stochastic and RSI are flat) on thinning pre-holiday markets, as traders await UK elections for fresh signals.
Tone on lower timeframes charts is negative that keeps near-term focus at the downside for possible retest of first trigger at 1.2820, violation of which would expose 1.2768 (8 Nov trough / low of short-term congestion under 1.30 barrier.
Converged 10/20/30DMA’s (1.2877/92) mark pivotal barrier, clear break of which would sideline downside risk.
Res: 1.2877; 1.2892; 1.2928; 1.2969
Sup: 1.2820; 1.2768; 1.2700; 1.2675