Prevailing tone on Monday is negative but cable continues to move within four-day range
Bumpy ride for cable at the beginning of the week, as the pair hit session high at 1.2437 (barrier formed by converged 30/20/10/55DMA’s) and subsequently fell to 1.2283 on uncertainty about models of easing Britain’s lockdown, pessimism about UK/EU trade talks and weaker stocks.
Fresh weakness cracked again strong support provided by daily cloud top (1.2309) but so far without clear break lower, keeping the price action within congestion that extends into fourth day.
Break of either side (daily cloud top or converged MA’s would provide initial direction signal.
Res: 1.2430; 1.2454; 1.2467; 1.2500
Sup: 1.2309; 1.2283; 1.2265; 1.2247