Recovery loses steam after two-week rally but bulls remain in play
Cable keeps positive tone at the start of the week following strong rally in past two weeks (3.1%) but bulls face headwinds from falling weekly Tenkan-sen (1.2661) which capped recovery last Friday and continues to limit the action today.
Today’s narrow range generates initial signs of stall as overbought stochastic on overall bullishly-aligned daily studies suggests bears may pause here for consolidation.
Repeated daily close above broken Fibo 38.2% of 1.3298/1.2155 bear-leg (1.2592) would add to positive signals, though extended dips are not ruled out, but need to stay above rising 10DMA (1.2533) to keep near-term bias with bulls.
Break of 10DMA support would weaken near-term structure and add to signs of recovery stall.
On the other side, lift above 1.2726 (50% retracement of 1.3298/1.2155) is needed to signal bullish continuation.
Res: 1.2666; 1.2700; 1.2726; 1.2772
Sup: 1.2592; 1.2533; 1.2471; 1.2440