Rising risk aversion turns Monday’s action in red
Cable started the week in red and erased the most of Friday’s recovery, pressured by strong risk aversion.
The pair was down 0.4% in Asia / early Europe on Monday and slid below cracked 100DMA (1.2949), turning daily MA’s back to full bearish setup.
Momentum and RSI turned south, adding to negative stance, as near-term action probed below 1.29 handle and pressuring Friday’s low (1.2876) which guards key support at 1.2849 (20 Feb three-month low) break of which would signal continuation of larger downtrend towards targets at: 1.2768 (8 Nov low), 1.2736 (50% retracement of 1.1958/1.3514) and 1.2690 (200DMA).
Daily Tenkan-sen provides initial resistance at 1.2959 after Friday’s recovery attempts dented it but failed to close above, with sustained break higher needed to ease rising bearish pressure.
Res: 1.2919; 1.2959; 1.2987; 1.3000
Sup: 1.2876; 1.2849; 1.2822; 1.2768