Recovery needs break above pivotal barriers to sideline bears
Cable is standing at the front foot in early Monday’s trading following gap higher weekly opening on fresh optimism on Brexit and US/China trade talks.
Last week’s dip (0.7% fall on Thu/Fri) found footstep at 1.2820 (Fibo 23.6% of 1.2197/1.3012) and fresh recovery attempts test the lower boundary of significant barrier at 1.2877/91 zone (converged daily 10/20/30DMA’s / bear-trendline connecting 1.3012 and 1.2975 peaks / weekly cloud base).
Break here is needed to generate bullish signal for stronger recovery and expose initial targets at 1.2828/69 (highs of last Fri/Thu).
Daily RSI and momentum turning up and supporting scenario, however, the downside would remain vulnerable if recovery fails to break higher that would signal bears positioning for fresh push lower.
Loss of 1.2820 Fibo support would expose pivot at 1.2768 (8 Nov low) and risk extension towards key level ay 1.2700 (200DMA / Fibo 38.2% of 1.2197 / 1.3012).
Res: 1.2890; 1.2928; 1.2969; 1.2984
Sup: 1.2840; 1.2820; 1.2768; 1.2700